ICBC (Dubai Branch) contributes to EUR 290 million syndicated loan for Optimum Izmir Shopping Center Construction Project

Project narrative

On October 18, 2017, Rönesans Gayrimenkul Yatırım A.Ş. signed an EUR 290,000,000 syndicated loan agreement with ICBC Turkey Bank A.Ş., the Dubai Branch of the Industrial and Commercial Bank of China Limited, and the Singapore Branch of Bank of China Limited for the Optimum Izmir Shopping Center Construction Project. The borrowing terms of the loan are unknown. However, it is known that a first degree mortgage dated October 20, 2017 on the Optimum Izmir Shopping Center (property) was pledged to the lenders as a source of collateral. In addition, on December 31, 2008, the adjacent land was registered as an immovable cultural asset to be protected due to the existence of historical artifacts on it such registration carries a requirement that the Monumental Protection Committee grant approval in advance of any construction or renovation work that may take place on the premises. The adjacent land is subject to the same first degree mortgage. There is a first degree share pledge over the shares in Esentepe Gayrimenkul Yatırım İnşaat Turizm Sanayi ve Ticaret A.Ş (a joint venture to which Rönesans Gayrimenkul Yatırım A.Ş. is a party which owns the land on which the Optimum Izmir shopping centre has been built) in favor of ICBC Turkey Bank A.Ş. (Ankara Branch). Optimum Izmir is a shopping center located in Izmir with GLA of 83,148 m 2. The property consists of 62,640 m 2 of project land and a shopping center. Optimum Izmir includes 252 stores and 3,062 parking spaces and its footfall in 2017 was 14.1 million. The shopping center was designed by 5+ Design and the construction was managed by Rönesans Construction. The shopping center opened in March 2012 and an extension was completed in March 2017 which added approximately 27,000 m 2 of retail GLA. Optimum Izmir is a freehold property owned by Esentepe Gayrimenkul Yatırım İnşaat Turizm Sanayi ve Ticaret A.Ş, which was incorporated in Turkey in 2007 and which acquired the land for the project in 2007 from the Rönesans Group. Rönesans Gayrimenkul Yatırım A.Ş. holds a 50% interest in Optimum Izmir, through its 50% equity stake in Esentepe Gayrimenkul Yatırım İnşaat Turizm Sanayi ve Ticaret A.Ş. The remaining equity stake had been held by the Government of Singapore Investment Corporation (GIC), through Euro Taurus S.à r.l., since February 2014. The property consists of 62,640 m2 of land, including the shopping center, and an adjacent area of land of 1,042 m2 designated for the exhibition of the historical artefacts found in the area during the construction works and transferred to the adjacent land for display. Izmir Optimum is one of the two finalists in 2018 ICSC awards in the large refurbishment and extension category. Optimum Izmir is located in the Gaziemir district of Izmir, which is bordered by the neighborhoods of Karabaǧlar, Buca and Menderes. The Aegean Free Zone, an area in which special regulatory treatment exists for the operating users in order to promote exports of goods and services and several large hyper-market-oriented retail center are in close proximity to the neighborhood in which there are no other shopping centers bigger than 20,000 m 2 GLA within a 15 minute drive time. Izmir city has a population of 4.3 million. Optimum Izmir is located approximately 4.5 kilometers from the Izmir Adnan Menderes Airport. Optimum Izmir is accessible by car or public transport. It is located approximately 50 meters from the closest underground station, Esbaş Station, and the Akçay Street also has many bus and minibus stops.