Corio acquires shopping centre project in Tarsus (Turkey)

Corio has acquired Tarsus shopping centre, a project of 25,000 m² GLA in the city of Tarsus, province Mersin, in the Eastern Mediterranean part of Turkey. In cooperation with ACTEEUM Group (hereafter: 'ACTEEUM') a shopping centre with approximately 25,000 m² GLA, for which the commercial zoning has been obtained, will be developed. The total investment in the Tarsus shopping centre will be approximately € 50 million and the net initial yield upon delivery is at least 8%, which is in line with Corio's other investments in Turkey. The shopping centre is expected to open in 2011. This transaction is in line with Corio's strategy to further strengthen its position in Turkey; the Tarsus shopping centre will be Corio's eleventh shopping centre in Turkey.

Location

Tarsus shopping centre will be located in the city of Tarsus, which is an important city within the Mersin province, in the southern part of Turkey on the Mediterranean coast between Adana and Antalya. Tarsus is at 25 km distance from Mersin (the city) and at 40 km distance from Adana. The accessibility and visibility of the shopping centre are very good. It takes a maximum of 10 minutes driving time to the location from different parts of Tarsus. According to the census held in 2007, the population of Tarsus is 319,000 of whom 229,000 live in the city centre. Adana Boulevard, which is adjacent to the southern part of the site, is used by some important public transport lines with the result that the shopping centre can be easily accessed by public transport and car. Tarsus is an affluent commercial centre with its major income coming from agriculture and textile and the refinement and processing thereof for export. Other industrial activities include agricultural machinery and spare parts, brick building and ceramics.

The project

The centre will be the first shopping centre in the city and will have a total GLA of approximately 25,000 m2. The shopping centre is planned to consist of two retail floors and an underground parking for about 800 cars. The shopping centre will be anchored by a hypermarket, an electronics store and has a strong food court and cinema as leisure component.

The transaction

The project will be developed by ACTEEUM as part of a cooperation agreement between Corio and ACTEEUM with the option for Corio to acquire a number of shopping centres with a total investment volume of approximately € 300 million. These projects will be in second tier cities of Turkey with 150,000 – 400,000 inhabitants. The projects are centrally located, in primary catchment areas, visible and well accessible. The Tarsus project will be 100% acquired by Corio, ACTEEUM will get a development fee and will share in the medium term performance after three 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. Tarsus is the second project under this agreement after Malatya (published 8 May 2008).

ACTEEUM

ACTEEUM is a privately owned real estate development and asset management group of companies, which works for professional investors in emerging markets. Its focus is on retail real estate projects in
Turkey, Ukraine and Georgia. ACTEEUM is based in Jersey/Channel Islands and has offices in Amsterdam, Istanbul, Kiev and Tbilisi. Including Tarsus ACTEEUM is involved in the development of eight shopping centre projects in Turkey.


Perspective

“Tarsus is one of the few towns in the Eastern Mediterranean which can trace its rich history back for 3,000 years. Tarsus is a known commercial hub and a market centre without a shopping centre. Corio and ACTEEUM will soon change this in a city centre location suitable for the first shopping mall of this affluent Mediterranean city. Corio’s expansion in the Eastern Mediterranean started from Iskenderun and reached Tarsus will add value to its Turkish portfolio.” states Koray Ozgul, CEO of Corio Turkiye.

Corio in Turkey

Tarsus is the eleventh shopping centre of Corio in Turkey. Corio’s first and largest investment is its 46.92% share in shopping centre Akmerkez in Istanbul (2005). Ada shopping centre 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 shopping centre in Malatya (2010), Iskenderun shopping centre in Iskenderun (2010) and Akasya (Acibadem) shopping centre in Istanbul (>2011).

source : Corio