Shopping centre developer Multi Corporation, owned by US private equity giant Blackstone, has confirmed that it does not plan to sell its portfolio in Turkey.
Multi was responding to questions about its plans, reported by PropertyNL/EU last week, to sell 24 shopping centres, including its entire Dutch portfolio, and a number of major shopping centres elsewhere in Europe.
Neither Multi nor Blackstone has confirmed or denied the reports, which PropertyNL/EU based on reliable sources.
Multi owns and manages 11 major shopping centres in Turkey in addition to managing another three malls for third parties. The centres are concentrated in and around Istanbul and Ankara. Multi's CEO Jaap Blokhuis said that despite ‘challenging conditions’, the centres are performing above the national average in terms of sales and attracted more visitors last year than in 2015. ‘Although consumer spending growth has slackened somewhat, we are seeing a strong rise in retail turnover. In addition, Turkish consumers prefer to shop in shopping centres rather than on the high street. This is because they offer both a safe environment and the retail offer is much more varied,’ he said, adding: ‘For Multi, there is therefore no reason to alter its investment policy regarding its shopping centre portfolio in Turkey.’
Smaller Dutch regional centres
The Dutch assets being put up for sale are believed to be smaller regional shopping centres such as Crabbehof in Dordrecht, Stadspoort in Ede, Scheldeplein (pictured) in Vlissingen and Angelso in Emmen. In Rotterdam, Multi manages the Forum mall, while the Parade shopping centre in Nootdorp was recently sold to German asset manager Real IS for €53.4 mln. It is not known which, or how many, shopping centres in the rest of Europe are part of the sale.
Multi Corporation developed and owned shopping centres throughout Europe and in Turkey before the firm and its portfolio were acquired by US private equity giant Blackstone in 2013. Following the sale Multi Corporation continued as the asset manager for Blackstone's shopping centre holdings in Europe.
In total, Multi has130 shopping centres in its portfolio. It is not known whether a buyer or buyers have yet been found for any of the assets that have been put up for sale, according to the sources.
Vastned pulls out
Earlier this month, listed Dutch retail property company Vastned announced it was selling its Turkish business and pulling out of the market as part of its strategy of focusing on five major European cities.
Commenting on the move, Vastned CEO Taco de Groot said the divestment of the Turkish portfolio 'clearly adds to the further stability of the portfolio'.
'The current geopolitical, political, and economic situation in Turkey and the expectation that it will not improve in the short to medium term, makes its less attractive for retailers to be present in Istanbul, putting rents under pressure in the future', he said.
The news came shortly after Vastned said it was writing down €33 mln on its portfolio in Istanbul as part of an overall €4.7 mln writedown on its total real estate portfolio last year.
