Turkey will become Corio's fifth home market. This was announced on Thursday, 24 August, 2006, by Corio's CEO Jan de Kreij during the presentation of Corio's 2006 half year results. In the coming years, Corio intends to invest another $300 million in Turkey.
Dutch property investor Corio has home markets in the Netherlands, France, Italy and Spain. Corio wants to expand its portfolio in Turkey considerably, so that the country will become the company's fifth home market. An important step was taken in April 2005, when Corio acquired a 46.9% interest in Akmerkez GYO, 96.5% owner of the leading shopping center Akmerkez in Istanbul. In the coming three to four years Corio intends to invest approximately $300 million in the country, mainly by acquiring interests in local companies. If this strategy turns out to be a success, Corio will settle its position by opening their own office in Turkey.
In the first half-year of 2006, Corio's net profit increased by 61% to €268.3 million (H1 2005: €166.3 million). The company's direct result amounted to b.9 million (H1 2005: d.4 million). The outlook 2006 with respect to the direct result, as announced with the annual results over 2005, is maintained:
"Assuming the portfolio as of 31 December 2005, the investments referred to, and also the effect of the higher level of financing, rising market interest rates, extra interest costs as a result of the interest rate fixation measures already taken and the partial non-recurring increase in administrative expenses, the direct result for 2006, including the direct result from the participation in Turkey, is expected to fall slightly. As far as the direct result from the year 2007 onwards is concerned, continuing growth is expected, also as projects reach completion in 2007 and 2008 accounting for approximately 300 million a year. In addition, opportunities in the market will be exploited as they arise, whereby Corio will continue to focus in its core markets on shopping centres that are dominant in their catchment areas. The result from revaluation has not been included in these forecasts."
Source: Corio
