Corio further strengthens its position in Turkey

Corio has reached an understanding regarding the acquisition of a 100%-interest in Bursa shopping centre in the city of Bursa. The transaction will take place against a predefined net initial yield in line with Corio’s other acquisitions in Turkey. The development of Bursa shopping centre with a gross lettable area of approximately 75,000 m2 has recently started. The expected opening date of the first phase of 24,000 m2 will be at the end of 2008 while the remainder is expected to be opened in the first quarter of 2010.

Bursa is the fifth largest city of Turkey and is located in the very affluent Marmara region in the north-west of Turkey. The population of more than 2.4 million inhabitants is continuously growing due to the ongoing urbanization. The university city of Bursa has assumed increasing economic importance as the heart of the Turkish automobile industry and as an important centre for the food and textile industry. Both Renault and Fiat have an automobile factory in Bursa. Bursa shopping centre will be located in the Osmangazı district of Bursa, approx. 5 kilometres north of the city centre, near the interstate bus terminal and directly adjacent to the highway connecting Bursa with other (major) cities and the new ring road around the city connecting the western and eastern part of Bursa. The location will also benefit from the construction of the new subway link between this part of the city and the city centre of Bursa with a station directly adjacent the shopping centre. The shopping centre will have a primary catchment area of 550,000 inhabitants within 10 minutes driving distance and 1.2 million inhabitants within 20 minutes driving distance.

Bursa shopping centre will comprise approx. 75,000 m2 gross lettable area and 3,200 parking spaces. The shopping centre is expected to be anchored by a home furnishing store of 24,000 m2, a hypermarket of 8,500 m2 and a DIY of 6,000 m2. Due to its excellent location, size and strong anchor tenants, Bursa shopping centre will be the dominant regional shopping centre in its catchment area.

The developer and vendor of the shopping centre is Maya Holding A.Ş. Maya Holding, headquartered in Istanbul, was founded in 1950 and is, amongst other things, active in the fields of residential and mall construction, textiles and the development of real estate. Maya Holding is the IKEA franchisee for Turkey and since 2003 they have opened two IKEA stores in Istanbul and one in Izmir.

Bursa shopping centre will be acquired on a turnkey basis after full completion early 2010. The amount of the total investment based on the predefined net yield will depend on the letting result. Maya and Corio will be jointly responsible for the letting of the shopping centre. After delivery, Corio will manage the shopping centre in-house.

Besides the future acquisition of Bursa shopping centre, Corio’s eighth in Turkey, Maya Holding and Corio have agreed in principle on a strategic partnership for future similar real estate developments in Turkey.

source : Corio