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Corio may invest about $500 million in Turkish shopping centers
Real estate news By NEW YORK-Bloomberg
Monday, October 8, 2007
Corio NV, the largest Dutch developer, may invest about $500 million in six Turkish shopping centers and other projects, double the amount it's spent so far in the country, Chief Executive Officer Jan de Kreij said. The company plans to construct malls in cities including Istanbul to take advantage of an increase in consumer spending, fueled by Turkey's growing population. The buildings are due to open by the end of 2009.
From a demographic point of view and a consumer-spending point of view, Turkey looks very attractive,'' De Kreij, 65, said in an interview at Corio's headquarters in Utrecht. ``We were the first to take the plunge as we could see an undersupply of malls.'' Corio in 2005 acquired 47 percent of Akmerkez GYO, owner of a shopping center is Istanbul's wealthiest area. That was Corio's first investment in Europe's second-largest city and it plans to build malls in Ankara, Adapazar? and Denizli on land bought with local partners.
Retail sales in Turkey are expected to increase 15 percent to 20 percent this year, according to a retailers' association. The country's population will probably grow 19 percent to about 88 million by 2025. the government's statistics office estimates. Turkey and Italy will become Corio's most important markets after the Netherlands, De Kreij said. The company's strategy is to own shopping centers that rank among the top three in terms of rent per square meter, he said.
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