Sonae Sierra targets Turkey with new joint venture

Portuguese shopping centre group Sonae Sierra has set up a joint venture in Turkey with local property manager Reval.

Sierra Reval will provide an integrated solution to its clients, from pre-development to development, leasing and property management, according to Sonae Sierra's CEO Fernando Guedes de Oliveira.

'Our entry into the Turkish market is a significant step that consolidates our geographical diversification while expanding our service provision business with a solid portfolio. Moreover, with our joint venture with Reval we are able to offer local and international recognised expertise and know-how in Turkey. We are confident that this step will bring continuous growth of successful clients' services over the next years.'

In addition to providing services for existing shopping centres, the new venture also aims to help with the launch of new and improved projects. Sierra Reval already has 10 service contracts countrywide - including development, property management and leasing services. Altogether, Sierra Reval is responsible for a portfolio with a GLA of over 215,000 M2.

At present, the Turkish shopping centre market continues to show growth in tandem with the increasing purchasing power of the population. The country has a young population with 43% aged under 24 and another 43% aged between 25 and 54. This makes it one of the most popular destinations for international retailers and investors in EMEA.

The total retail GLA across Turkey currently stands at 110 m2 per 1,000 inhabitants. This is less than half the European average of 260 m2 per 1,000 inhabitants. Turkey currently has a retail pipeline of around 1.5 million m2 GLA spanning the next two years.

Sonae Sierra owns 48 shopping centres and is present in 12 countries: Portugal, Spain, Italy, Germany, Greece, Romania, Croatia, Turkey, Morocco, Algeria, Colombia and Brazil. Sonae Sierra manages and/or lets 84 shopping centres with a market value of more than €5.8 bn. Sonae Sierra currently has six projects under development, and five new projects in the pipeline.