Diyarbakır shopping mall fails to find a loan
Güncelleme Tarihi:
Milliyet
Oluşturulma Tarihi: Mayıs 16, 2009 00:00
ISTANBUL - Multi Turkmall, constructer of six shopping malls in Turkey, has always been able to find loans for its investments. But not this time. All banks have denied the firm’s request for a loan to finance a shopping mall it is planning to build in Diyarbakır
Multi Turkmall, the Turkish affiliate of the Dutch Multi Corporation, has so far constructed six shopping malls in Turkey using loans. However, the firm’s luck turned when it wanted to establish a shopping mall in the southeastern province of Diyarbakır.
"No banks wanted to provide loans for the Diyarbakır investment. Public banks included," said Multi Turkmall Chief Executive Officer Levent Eyüboğlu.
Multi Turkmall has so far invested in Forum Bornova, Forum Mersin, Forum Çamlık Denizli, Forum Trabzon, Forum Aydın and Forum Ankara Outlet as well as many other projects. The same model was used in establishing all of the investments.
The company used its own equities to meet 20 percent of the cost for each investment, with the rest of the cost met by loans. Multi Turkmall also partners with landowners. But the model failed to bear positive results in Diyarbakır.
"We have knocked on every door, including the public banks. We have adjusted the model in a way that we would be meeting 30 percent of the total cost of the investment with our own equities. The answer was still ’no.’ We have been waiting for a loan for the past three years. All the banks have asked for extra guarantee. ’There is a risk,’ they say. We will start building as soon as we get a loan approval. The location is ready," said Eyüboğlu. "There is much interest in the shopping mall. Around 60 percent of the mall has already been rented. We have signed contracts."
"Banks are asking for extra guarantees such as a holding or company. Our company principles do not allow such an act. We have never provided extra guarantees in any of the loans we have attained. This was only requested for our Diyarbakır investment and it is not possible for us to provide such guarantees."
Multi Turkmall is now working on plans for four other shopping malls, one of which will be Europe’s largest shopping mall. "We will open Forum Istanbul in September," said Eyüboğlu.
Award for Forum Mersin
The International Council of Shopping Centers, which was founded in 1957, selected Forum Mersin Shopping and Life Center as Europe’s best large-scale shopping center in 2009.
"We traded land studies in 2000. Then Forum Mersin was opened in October 2007. The shopping mall has about 18 million annual visitors and is one of the most visited shopping malls in Turkey. Syrians often visit the shopping mall, including 45,000 tourists in 2008. We expect 80,000 to 90,000 Syrian tourists this year. The shopping mall’s annual turnover is 30 million euros," said Eyüboğlu.
The shopping mall is located on an area of 66,000 square meters and is home to 196 stores, a cinema complex with eight screens, restaurants, a bowling alley and a 1,000-vehicle car park. The center was built with a budget of 180 million euros.
"No banks wanted to provide loans for the Diyarbakır investment. Public banks included," said Multi Turkmall Chief Executive Officer Levent Eyüboğlu.
Multi Turkmall has so far invested in Forum Bornova, Forum Mersin, Forum Çamlık Denizli, Forum Trabzon, Forum Aydın and Forum Ankara Outlet as well as many other projects. The same model was used in establishing all of the investments.
The company used its own equities to meet 20 percent of the cost for each investment, with the rest of the cost met by loans. Multi Turkmall also partners with landowners. But the model failed to bear positive results in Diyarbakır.
"We have knocked on every door, including the public banks. We have adjusted the model in a way that we would be meeting 30 percent of the total cost of the investment with our own equities. The answer was still ’no.’ We have been waiting for a loan for the past three years. All the banks have asked for extra guarantee. ’There is a risk,’ they say. We will start building as soon as we get a loan approval. The location is ready," said Eyüboğlu. "There is much interest in the shopping mall. Around 60 percent of the mall has already been rented. We have signed contracts."
"Banks are asking for extra guarantees such as a holding or company. Our company principles do not allow such an act. We have never provided extra guarantees in any of the loans we have attained. This was only requested for our Diyarbakır investment and it is not possible for us to provide such guarantees."
Multi Turkmall is now working on plans for four other shopping malls, one of which will be Europe’s largest shopping mall. "We will open Forum Istanbul in September," said Eyüboğlu.
Award for Forum Mersin
The International Council of Shopping Centers, which was founded in 1957, selected Forum Mersin Shopping and Life Center as Europe’s best large-scale shopping center in 2009.
"We traded land studies in 2000. Then Forum Mersin was opened in October 2007. The shopping mall has about 18 million annual visitors and is one of the most visited shopping malls in Turkey. Syrians often visit the shopping mall, including 45,000 tourists in 2008. We expect 80,000 to 90,000 Syrian tourists this year. The shopping mall’s annual turnover is 30 million euros," said Eyüboğlu.
The shopping mall is located on an area of 66,000 square meters and is home to 196 stores, a cinema complex with eight screens, restaurants, a bowling alley and a 1,000-vehicle car park. The center was built with a budget of 180 million euros.