CGI buys Forum Bornova for approximately 100 mln (TR)

Property developer AM NV (via its subsidiary MDC Turkmall) and real estate asset management company Commerz Grundbesitz-Investmentgesellschaft mbH (CGI) have signed the contract for the sale of the Forum Bornova shopping centre project of GLA 67,000 m² in Izmir, Türkiye. This retail project represents an investment value of approximately €100 mln. It is the first shopping centre to be developed by AM in Türkiye. CGIs co-operation with AM (MDC Turkmall) is the first investment of a German open-ended property fund in Türkiye and a result of the long-term, successful partnership between the German asset management company and AM.

With the creation of the Forum Bornova shopping centre, MDC Turkmall is bringing a new and distinctive project to the Turkish retail market. The project is located next to the famous Ege University in the North-Eastern part of Izmir city. The excellent location next to the new ring motorway around the city provides for excellent accessibility as well as visibility. The conceptual challenge has resulted in a small Mediterranean village in a suburban context.

Ikea as one of the anchor tenants
Forum Bornova will be anchored by an Ikea store (their second store in Türkiye) , a large hypermarket as well as a number of well-known international brands. A cultural centre with a cinema, library and an art gallery will also be part of this development. Parking is foreseen for approximately 3,000 cars. The opening will take place in the autumn of 2006.

Strategic focus on growth markets in retail
The Forum Bornova project is consistent with AM's strategy of strengthening the company's position in the growth markets for shopping centres (Southern Europe, Central Europe and Türkiye) in partnership with institutional investors and international retail chains. These markets show a strong and persistant demand for modern shopping centres complete with leisure facilities. AM has acquired a strategic position in Türkiye in 2004 by entering into a joint venture with the local player Turkmall (MDC Turkmall). The commercial property development portfolio of MDC Turkmall represents several projects with a turnover volume in excess of 800 million euro.

The architect of Forum Bornova is T+T Design, Gouda (Netherlands) and the technical design is executed by Tepe Insaat Sanayi AS in Ankara (Türkiye). Van Gool Elburg Vastgoed Specialisten advised CGI in this transaction.

CGI: Turkey very promising
“Turkey is one of the very promising locations for the retail trade worldwide. In the last few years the buying power of the consumers has risen considerably. The retail trade has developed noticeably better for a long time now than the European average, simultaneously there is a lower availability of modern shopping center areas”, says Dr. Frank Pörschke, Managing Director of the CGI. “This first investment for hausInvest global in Turkey, will persistently strengthen the performance of our fund,” according to Pörschke.

Source: AM/CGI

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