Apollo Real Estate, Morgan Stanley team up for €267m Turkish mall

Apollo is buying land for development in Istanbul in conjunction with a Turkish joint venture partly owned by Morgan Stanley’s Multi Corporation.

Apollo Real Estate has teamed up with the Turkish arm of Morgan Stanley’s Multi Corporation to acquire a site in Meter, Istanbul, from French hypermarket group Carrefour and partner Sabanci Holding.

The joint venture between Apollo and Multi-Turkmall is acquiring the site for €267 million ($396 million) in order to develop one of Turkey’s biggest shopping centers.

The project will provide a hypermarket for Carrefour that is expected to open in 2010, according to Carrefour. In a statement the firm pointed out that the land sale is leading to a €150 million capital gain before tax.

Financing for the development is reportedly coming from Eurohypo, Arbank’s Malta branch and Garanti Bankasi’s Luxembourg branch.

The mall will be called Meter Carrefour Shopping Centre with around 155,000 square meters of rentable space.

Multi-Turkmall in itself is a joint venture between Dutch based pan-European developer Multi Corporation and Turkey’s Turkmall and has projects in 12 locations in Turkey including Istanbul in the northwest of the country and Izmir in the west.

Apollo is run in Europe by William Benjamin.