Vastned Retail has acquired its seventh prime high street premises in the heart of Istanbul for EUR 29.5 mln, including purchase costs, from Yapi Kredi Bank (YKB). The pan-European retail property fund now has a EUR 90 mln-plus portfolio in Turkey.
Vastned Retail has acquired its seventh prime high street premises in the heart of Istanbul for EUR 29.5 mln, including purchase costs, from Yapi Kredi Bank (YKB). The pan-European retail property fund now has a EUR 90 mln-plus portfolio in Turkey.
The Dutch company acquired half of a YKB premises located on the southern part of Istiklal Caddesi, opposite to one of Vastned Retail's other high street shops (Turkcell) and near Galatasaray Square. The property has a gross lettable area of 4,750 m2, of which more than half is suitable for retail purposes. The façade of the retail part is 20 metres wide.
The property will be renovated shortly. The gross rental income is expected to be around EUR 2.5 mln per year, and taking into account EUR 3.5 mln in refurbishment costs, this would result in a 7.3% net initial yield. Over 80% of the income will be generated from the retail area. Vastned Retail said that it expects to be able to attract the best international tenants to the location.
Reinier van Gerrevink, CEO Vastned Retail: 'With this transaction we are well on our way to achieve our strategic goal of developing Turkey into a fifth core market. Our approach of limiting ourselves to prime high street shops in a small number of streets and buying vacant properties letting them back-to-back to strong retailers appears to be very successful. Major European and American retailers are queuing up to install their flagships in the heart of
Istanbul, which creates good letting opportunities for our recently acquired properties.'
