EXPANDING THE MANAGEMENT PORTFOLIO
BUSINESS IS BOOMING AT ECE TÜRKIYE
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What makes ECE Türkiye so successful as a real estate manager?
Semet Yolaç Canlıel: ECE Türkiye combines extensive local expertise with a long-term vision for our retail real estate business. We’ve gone through numerous economic crises since our founding, but thanks to our dedicated, experienced team we’ve consistently managed to weather even the difficult times, always adapting flexibly to the changing environment and learning from setbacks. Support from our international parent company has been crucial to our success. Another factor that sets us apart from our competitors, and plays a big part in our success, is our ability to see things from our investors’ perspective.
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How have the centers developed over the last few years?
Nuri Şapkacı: The shopping centers we manage bounced back quickly from the pandemic. Retail turnovers in 2023 exhibited a remarkable 90% surge compared to the previous year, surpassing the 65% inflation rate. In parallel, we saw a 9% uptick in customer footfall during the same period. We are also pleased with our exceptionally leasing performance, with an occupancy rate nearing 100% , and our impressive collection rate of 99%. With these KPIs, we’re outperforming the industry benchmarks. >
ECE’s largest national subsidiary, ECE Türkiye (founded back in 2000), has been racking up one success after another. After taking over management of the V Metroway and Palladium Atasehir shopping centers in Istanbul in 2023, in 2024 it was able to expand its management portfolio still further. Early on in the year, it secured the management contract for Agaoglu Cekmeköy Park, and then in spring it won the tender for management of the Forum Bornova shopping center in Izmir. This is a center operated by Commerz Real, which ECE has been working successfully in Germany for more than 13 years.
We spoke to ECE Türkiye’s Co-Managing Directors Semet Yolaç Canlıel and Nuri Şapkacı about the current state of Turkey’s retail real estate sector and some of the unique local factors.
„We’re configuring our sector and tenant mix with a variety of new tenants and popular brands geared to the needs of younger people.“
SEMET YOLAÇ CANLIEL, CO-MANAGING DIRECTOR, ECE TÜRKIYE
100 %
OCCUPANCY RATE
+9 %
FOOTFALL IN 2023 VS. 2022
110
SHOPS
30,000 m²
OF RENTAL SPACE
Agaoglu Cekmeköy Park
Agaoglu Cekmeköy Park is part of a mixed-use development in one of Istanbul’s dynamically growing districts, with a total of 739 modern residential units and a shopping center with around 110 stores and 30,000 m² of rental space. It is scheduled to open in Q4 2024.
Izmir
Forum Bornova
Forum Bornova, Izmir’s first open-air shopping center, is a natural fit for the stunning Aegean metropolis thanks to its architecture, the many well-known local and international brands – including IKEA and the hypermarket Migros – and the selection of entertainment options, cafes, and restaurants with outdoor seating areas.
62,000 m²
OF RENTAL SPACE
130
SHOPS
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What impact is high inflation having on visitor numbers and sales?
Nuri Şapkacı: Shopping centers are an integral part of our everyday lives in Turkey, offering not just places to go shopping but also opportunities for social interaction. High inflation rates have affected customers’ purchasing habits in two ways. On the one hand, they’ve meant a loss of purchasing power, which is having a negative impact, while on the other, the expectation of a generalized increase in prices is motivating consumers to make their purchases earlier, which is boosting sales. But that’s not a sustainable situation. The governmeis, however, taking steps to reduce inflation. If the economic policies achieve the expected results, we’re hoping for sustained growth over the longer term.
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What distinguishes shopping centers in Turkey from those in other countries, like Germany?
Semet Yolaç Canlıel: Turkey's shopping center sector has vastly expanded in the last 20 years. Many of the existing shopping centers were built to cater to new trends. These next-generation shopping centers integrated restaurants and entertainment right from the outset. We’re configuring our sector and tenant mix with a variety of new tenants and popular brands geared to the needs of younger people. As cities grow rapidly, shopping centers, especially ones on the outskirts of cities, are also coming to serve as social hubs. //
Istanbul
Palladium Atasehir
ECE took over management of this Istanbul center in January 2023 and, over the course of that year, let or relet 22 shops with a combined floor area of 9,000 m 2 . The center was also renovated, and the sector and tenant mix optimized.
30 %
SALES UP IN 2023 VS. 2022 (ON A EURO BASIS)
+8 %
FOOTFALL IN 2023 VS. 2022
Istanbul
V Metroway
Located in Basaksehir, one of Istanbul’s fastest-growing districts, this center will open in Q3 2024.
25,000 m²
OF RENTAL SPACE
80
SHOPS
Istanbul
Marmara Park
This large, modern center is located in one of Istanbul’s most popular districts and boasts a diverse mix of sectors and tenants.
28 %
SALES UP IN 2023 VS. 2022 (ON A EURO BASIS
+5 %
FOOTFALL IN 2023 VS. 2022
Eskişehir
Espark
Located in downtown Eskişehir, this center is the city’s most popular place to go shopping and maintains close ties with the local community.
57 %
SALES UP IN 2023 VS. 2022 (ON A EURO BASIS)
+12 %
FOOTFALL IN 2023 VS. 2022