Dutch fund buys new property in Istanbul

ISTANBUL – Hürriyet Daily News

Dutch retail property fund VastNed Retail has increased its presence in Turkey with a 29.5 million-euro purchase in central Istanbul, it’s seventh in the Beyoğlu district.

The transaction involves half of a building located at 161 İstiklal Avenue, next to the Galatasaray Lycee (high school).

“The property will be renovated shortly” and after refurbishment costs of 3.5 million euros, its gross rental income is expected to be around 2.5 million euros per year, according to a press statement. The figure represents a net initial yield of 7.3 percent.

The acquisition brings the total value of Vastned’s Istanbul portfolio, which generally focuses on prime high street shops around İstiklal, to 80 million euros. The company’s investments in Turkey as a whole have reached 90 million euros. Tenants renting retail space from the fund include Turkcell, Topshop, Penti and Abercrombie & Fitch.

“With this transaction we are well on our way to achieve our strategic goal of developing Turkey into a fifth core market. Major European and American retailers are queuing up to install their flagships in the heart of Istanbul,” the company statement quoted Reinier van Gerrevink, CEO of VastNed Retail, as saying.

VastNed owns a portfolio of high street properties, estimated at approximately 2 billion euros, mostly in the eurozone.