Can you tell us a little bit about Multi Development Turkey? What is your core business?
Multi Development Türkiye is a 100% participation of Dutch based Multi Corporation. We create, develop and manage multi-purpose projects covering shopping centers, offices, and residential units.
Since 2004 we have made an investment of €3.2 billion in Turkey and started the operations of 10 shopping centers (Forum Bornova, Forum Mersin, Forum Çamlik, Forum Trabzon, Forum Aydin, Forum Ankara Outlet, Forum Istanbul, Forum Kapadokya, and Marmara Forum, Forum Kayseri). With a total of 721,000 m² GLA, we are leaders both in Europe and in Turkey.
Furthermore, as Multi Development Türkiye, we are offering employment for 35,000 people within the Forum malls we create, develop and manage.
How has your business changed along with the changes in the real estate markets?
When we decided to enter the Turkish market as Multi Development, we were aware of its significant potential. During the last decade, the development of the mall industry in Turkey did not prove us wrong. However, there are still cities with no malls, particularly in Anatolia. This is an important sign that the industry will expand towards those cities.
The development of the sector, which follows a course that is parallel to the growth potential of the domestic and foreign brands in the retail sector, enhances our belief in Turkey. Therefore, we are conducting R&D studies in various cities for new projects.
What are your plans for growth, and where will your growth be directed in the coming years? Are you planning to expand into new markets?
The shopping center sector, which has reached an annual size of 50 billion TL in Turkey, is still attractive for local and foreign investors and naturally, for us too. As Multi Development Türkiye, we are the market leader with a share of 15%. This motivates us for further growth. We are currently working on six new projects; four of these are in the construction stage, and two in the development stage.
We started with the Forum Gaziantep project during the second half of 2011, which we intend to complete in 2013. Furthermore, projects in Adana, Diyarbakýr and Çanakkale are also included in our agenda. Subsequently we will proceed with the Forum Çorum and Forum Elazig projects. Our target is to increase the number of Forum Shopping Centers, which is currently 10, to 16 in the course of three years.
What is the secret of Multi Development’s success in Turkey?
In the present day, the retail and the mall business has become Turkey’s locomotive sector. When we look at the growth figures and the foreign capital, turnover, visitor numbers, and employment rates in the sector, we can say that the progress is extremely good.
When we examine the situation during the last three years both on a sector basis and from the perspective of Multi Development Türkiye, we see that 5% of these investments reaching US $40 billion were implemented by Multi Development Türkiye.
As Multi Development Türkiye, we have always accomplished successful projects thanks to our concepts, architectural features, tenant mix, customer relations approach, and our social areas. One of the most important factors ensuring our success was the fact that all Forum Shopping Centers were positioned as separate brands under the ‘Forum’ name, and all activities were conducted accordingly. We can thus analyse the socio-cultural structure of the region we operate in and the needs of the people in the region, and develop projects that can meet their expectations.
Each project has a different concept. Particularly outside Istanbul, people wish to see local components in malls. Our communication efforts, combining local components with a global perspective, play a significant role in our achievements in Turkey.
Our projects which are regarded as absolute values of the regions they operate in, with a significant function in the revitalization of the region, have been deemed worthy of various awards in the international arena as well. For instance, we have received the Best Shopping Center award at ISCS’s European Shopping Centers Awards with Forum Mersin in 2009, and with Marmara Forum in 2011.
In your opinion, what is the outlook for the Turkish real estate market over the next 12 months? Is the retail market in Turkey saturated?
The shopping center sector, the foundations of which were laid with Kapalicarsi (the Grand Bazaar) 500 years ago, is today representative of Turkey across the world. Furthermore, the sector is at its early 20’s in Turkey, and the development has acquired an acceleration in the last 10 years.
During this period, the Turkish shopping center business has created noteworthy assets significant both in Europe and across the world, and was deemed worthy of significant awards. The turnover of 50 billion TL a year gave the Turkish mall sector a strong voice in Europe. Currently, there are 299 active shopping centers in Turkey. Along with the major new projects that will be implemented in the next two years, the current total 8.3 million m² of shopping centers in Turkey will have reached 10 million m² with a total of 350 malls.
The Turkish shopping center sector is currently at the growth stage, therefore with the right investments there is still room for very successful projects. I can say that the growth in the sector is continuing, although slowly. There are malls only in 49 out of 81 cities in Turkey. This percentage presents a huge potential for new investors.
