Multi Corporation, the Dutch based retail developer, has closed its Turkish retail property fund with investment from the Canada Pension Plan Investment Board.
The Multi Retail Turkey fund consists 21 completed, under construction or planned shopping centres across Turkey.
The projected value upon completion of € 4.3bn (£4bn ) of assets will be financed through a combination of fund equity and bank facilities.
Canada Pension Plan Investment Board is the first founding investor with an equity commitment of €250m (£235.2m). The Canadian pension fund manages more than C$117.4bn (£63.9bn) of funds.
Multi this week said it is concluding negotiations with the fund’s second founding investor to close before the year end and it may seek additional investors. But Multi will retain majority ownership of the fund.
The establishment of the fund creates Turkey’s largest portfolio of retail real estate assets.
The shopping centres within the fund include the 1.9m sq ft (178,000 sq m) Forum Istanbul due to open in mid-2009. It will be the third largest shopping centre in Europe.
The Multi Retail Turkey fund is focused on downtown locations in cities covering 70% of the Turkish population. Five of the shopping centres within the fund are already opened and fully leased.
Glenn Aaronson, CEO of Multi Corporation, said: ‘I am pleased that we have been able to seed the Multi Retail Turkey fund with an investment from the Canada Pension Plan Investment Board. It is testimony to the outstanding work of all the Multi people who have contributed to the acquisition, design and development of this exciting portfolio.’
Multi is backed by Morgan Stanley Real Estate Fund and has projects in 16 European countries.