Corio acquires shopping centre project in Iskenderun (Turkey)

Corio has acquired the Iskenderun shopping centre, a project of 55,000 m² GLA in the city of Iskenderun-Hatay. Iskenderun is located in the South of Turkey in the province of Hatay.

The Yayla Group and Kalyoncu are the developers of the shopping centre. The total investment in the Iskenderun shopping centre is expected to be around € 116 million at a predefined net initial yield of at least 8%, in line with Corio’s other investments in Turkey. The shopping centre is expected to open in the first half of 2010. This transaction is in line with Corio’s strategy to further strengthen its position in Turkey; the Iskenderun shopping centre will be Corio’s tenth shopping centre in Turkey.

Location

Iskenderun is located in the South of Turkey, in the Mediterranean region (approx. 500 km south-east of Ankara and 50 km south-east of Adana), in the province of Hatay. Iskenderun is both the biggest and the wealthiest city of Hatay. Together with Antalya, Adana and Mersin it belongs to the wealthiest cities of the Mediterranean region. The city has the 3rd biggest port of Turkey as well as an important industrial centre (steel industry).

The shopping centre will be located at an attractive location in the vicinity of the city centre, as well as close to roads connecting the city to Hatay and Adana. Considering the fact that the shopping centre will be the first in the city and the province of Hatay, the 300,000 inhabitants can be seen as primary catchment area and on top of that it will attract visitors from outside the city. Proximity to Syria will be another attraction point. The size (55,000 m² GLA), as well as the advantage of being the first, will ensure that the dominance of the centre is sustainable.

The project

The Yayla Group and Kalyoncu are developers of the shopping centre. The Yayla Group is experienced in developing shopping centres and Kalyoncu in developing residentials. The centre will have a GLA of approximately 55,000 m² divided over three floors. Two anchor tenants (a hypermarket and a DIY) will be located on the ground floor, the second floor will be dedicated to fashion and the third floor will have a cinema and a food court area. Construction will be at risk of the developer, Corio Turkiye will handle the leasing of the shopping centre in-house and manage the centre upon completion.

Perspective

“Iskenderun has always been a junction of different cultural heritages, being situated on the verge of Eastern Mediterranean. This vibrant and culturally rich city has been waiting for a modern shopping mall. Altoon & Porter, based in LA, USA has carried out a concept study which amalgamated a Mediterranean city, warm climate and streets in an air-conditioned environment. A&P’s concept will bring a difference by also using sustainable features, enabling cost efficient operations. ERA which is a renowned Project Management company of Turkey will manage the construction period. Having
concept and project management influenced by Corio and its experienced team, the project will be the prominent star of this region.” states Koray Ozgul, CEO of Corio Turkiye.

Corio in Turkey

Iskenderun is the tenth shopping centre of Corio in Turkey. Corio’s first and largest investment is its 46.92% share in shopping centre Akmerkez in Istanbul (2005). Adacenter in Adapazari opened in November 2007, Teras Park in Denizli opened in April 2008 and 365 in Ankara in May 2008. Other developments are, Tekira in Tekirdag (2009), Akkoza in Istanbul (2010), Anatolium in Bursa (2010), Malatya in Malatya (2010) and Acibadem in Istanbul (>2011).

Variable pipeline

The acquisition of the Iskenderun shopping centre is subject to approval of the Turkish Competition Board. When this transaction is approved the project will be transferred from the variable to the fixed pipeline.

source : Corio