Corio is investing EUR 110mln in the development of a 50,000 m[sup]2[/sup] shopping centre in the eastern Turkish city of Malatya. The Dutch retail property company said it has acquired a 33,400 m[sup]2[/sup] plot on which it will build the mall with privately-owned real estate group Acteeum. The commercial zoning for the scheme is already in place.
Corio is investing EUR 110mln in the development of a 50,000 m2 shopping centre in the eastern Turkish city of Malatya. The Dutch retail property company said it has acquired a 33,400 m2 plot on which it will build the mall with privately-owned real estate group Acteeum. The commercial zoning for the scheme is already in place.
Corio added that the cooperation agreement with Acteeum also provides an option for the company to work together on the development of a number of shopping centers in Turkey for a total investment of EUR 300mln. Acteum will receive a fee to be developer of the projects. The projects will be in second-tier cities of Turkey with 150,000 - 400,000 inhabitants. Corio will own 100% of the schemes, but Acteeum will share the centre's performance in the medium term. The leasing of the projects will be a joint effort and upon delivery the shopping centers will be managed by Corio.
The Malatya development, planned for delivery in the second half of 2010, will be the first modern regional shopping center in the city. The net initial yield upon delivery will be at least 8%, Corio said, noting that the transaction is in line with its strategy to further strengthen its position in Turkey where Corio has nine shopping malls. The two-floor shopping center will be anchored by a hypermarket, DIY store and a cinema with a food court and will include 1,900 parking spaces. The primary catchment area is estimated at 395,000 people.
Acteeum, based in the Netherlands, has offices in Turkey, Ukraine and Georgia. The company is developing six projects in Turkey.
