Corio has cancelled the Akkoza (25% interest) and Akasya (7% interest) shopping center development projects in Turkey (79.5 million) and removed these projects from its pipeline. Corio's investment strategy in Turkey is currently focussed on established operational centres in primary cities rather than development projects. As a result of this Corio has reached an agreement with the developers of the Akkoza and Akasya shopping center project to cancel the participation of Corio in these development projects.
Akkoza was included in Corio's fixed deferrable pipeline for 73.4 million. Also Akasya was part of the fixed committed pipeline and to date 6.1 million had been invested in this project. Future equity contributions were not yet planned. Corio prefers to be in control of the management and letting of the project and therefore has decided to waive the 25% (during development and 50% upon delivery) and 7% interests in the shopping center projects described above. The total costs for Corio to waive both projects are E 3 million. The costs will be in Corio's indirect result over 2009.
Corio and Acteeum Group have jointly decided to restructure their cooperation by terminating their General Development Agreement. Corio has decided to continue in-house with the development of the Tarsus and Malatya shopping center development projects. Corio will manage the process and Acteeum will provide its services for the next eight months. The project in Malatya is part of the variable deferrable pipeline and is as such temporarily on hold, awaiting better (local) market conditions.
For the project Tarsu in Tarsus, which is included in the fixed committed pipeline the predevelopment work has been nearly completed and the pre-letting is progressing. Construction will start in the second quarter of 2010 with an expected delivery mid 2011. As usual, Corio will not take the construction risk and put that aside with a construction company. Corio is very excited with the design and concept of the center and the application for a BREEAM Development certification for Tarsu; it is expected that the center will receive a 'very good' rating.