Corio acquires shopping center project in Malatya

Corio has acquired a plot of land of 33,400 m² in the city of Malatya. Malatya is a strongly growing city in Eastern Turkey with approximately 395,000 inhabitants. In cooperation with Acteeum Group a shopping center with approximately 50,000 m² GLA, for which the commercial zoning has been obtained, will be developed.

The development will take place under a cooperation agreement between Corio and Acteeum with the option for Corio to work together on the development of a number of shopping centers in Turkey with a total investment volume of approximately €300 million. Acteum will be the developer. The total investment in the Malatya project is expected to be €110 million and the net initial yield upon delivery is at least 8%, in line with Corio’s other investments in Turkey. The opening of the shopping center project is planned in the second half of 2010. This transaction is in line with Corio’s strategy to further strengthen its position in Turkey; the Malatya center will be Corio’s ninth shopping center in Turkey.

The project is going to be the first modern regional shopping center in Malatya, with a total GLA of over 50,000 m². The two floor shopping center will be anchored by a hypermarket, DIY store and a cinema with a food court. It is centrally located in its catchment area, very visible and eassily accessible from different parts of the city. The primary catchment area is estimated at 395,000 people; and the larger secondary zone includes 722,000 people. The population of the Malatya province is growing with an average annual rate of 3.26% as compared to national average of 1.83%.

The project will be developed by Acteeum Group under a cooperation agreement between Corio and Acteeum with the option for Corio to develop a number of shopping centers with a total investment volume of approximately €300 million. Acteum will be the developer against a fee. The projects will be in second tier cities of Turkey with 150,000 – 400,000 inhabitants. These projects are centrally located, in primary catchment areas, visible and well accessible. The project will be 100% acquired by Corio, but Acteeum will share in the medium term performance after four operational years above a predefined internal rate of return for Corio. The leasing of the projects will be a joint effort and upon delivery the shopping centers will be managed by Corio. Malatya is the first project under this agreement.

“Malatya is in the heart of Eastern Anatolia in terms of population as well as the commercial activities. This vibrant city does not have a modern shopping center yet and Corio is intending to change this. A critical mass of 50,000 m² GLA and a very dominant down town location would provide the necessary strength to become and stay the number one shopping center in the city. In terms of leasing and management, Corio’s economies of scale and experience in Turkey would be beneficial to this project”, states Koray Ozgul, CEO of Corio Turkiye.

source : Corio