The shopping malls with over 15 billion dollars of investment loan debt cannot convert their debts. It is stated that 30 shopping malls are on the way to transfer to banks.
As of the past year, the Shopping Centers, whose number reaches 440 and the leasable area reaches 13,1 million square meters, is in danger of transferring to banks. The shopping malls, which provided 6,5 billion TL support to the brands within the scope of lease support, became unable to pay their own debts with the effect of the increasing exchange rate.
According to the news of Yener Karadeniz from Dünya newspaper;“It has been stated that nearly 15 shopping malls in the sector with a debt of 30 billion dollars are faced with the risk of transfer to banks. Emphasizing that banks may be the largest shopping center owners in the near future, sector representatives demanded 1-year interest-free deferral of debt and return to TL support in order to sustain the sector, which provides employment for nearly 1 million.
CLOSE TO 200 MALL DEBT
According to the information we have received, domestic investors generally use around 20-25 percent equity in their shopping mall investments. In loan applications, institutions that guarantee their lease agreements receive loans with terms of 6-7 years. For foreign investors, the maturity exceeds 10 years. As it is known, as of October 2018, rentals were transferred to TL. It is stated that the number of shopping malls that received foreign currency loans before the implementation was around 200 and most of them continued to be paid. It is stated that the amount of the said debt is around 15 billion dollars as of this year.
THE NEGATIVE EFFECT OF DRY INCREASES
With a rough calculation, the credit burden of the shopping malls whose revenues returned to TL increased by 2018 percent due to the increase in the exchange rate since October 25. Considering the falling incomes during the pandemic period, many shopping malls became unable to roll over their debts. The transfer of shopping malls to banks that cannot fulfill their debt obligations has also accelerated.
AVİ ALKAŞ: LOAD OF LOAN HAS BECOME IMMOVABLE
Avi Alkaş, Vice Chairman of AYD Board of Directors and Chairman of the Board of Alkaş, emphasized that the foreign currency credit burden for the last two years has become unmovable due to the currency scissors opened. Alkaş said, “If a significant portion of the 440 shopping malls in the sector cannot regulate their relations with banks, the largest shopping mall owners will be banks. After the transfer, banks turn into ownership of shopping malls. It is said that this trend has become widespread ”. Stating that today there are serious conflicts in the shopping mall economy due to increasing expenses and decreasing incomes, Alkaş says: “Shopping malls are factories without chimneys. It provides employment for thousands of people. Shopping malls are also very important for formal economy and employment. Many brands were able to open up to foreign markets by improving their competitive capabilities in shopping malls. Therefore, it is a fact that shopping malls are indispensable for our international brands.
INTEREST-FREE PAYMENT AND RETURN TO TL
Drawing attention to the fact that the transfer to banks will accelerate if normalization is not realized in the near future, AYD President Hüseyin Altaş continued as follows: “We, as shopping mall investors, provided rental support to brands amounting to 6,5 billion TL. bankrupt retailers such as the EU and the US, along with other support not seen in Turkey. Now we want one thing to survive. Let debts be postponed without interest for a year and support should be given in returning to TL. Otherwise, the pandemic will last longer and if we cannot return to normal within 3 months, bank turnover will increase. " According to the information provided by Altaş, the number of shopping malls in danger within this scope is around 30. On the other hand, as of the end of 2020, the turnover of shopping malls remained at 70 percent of the pre-pandemic period, while their own rental income decreased by 40-50 percent compared to the previous year. Considering that the turnover of the sector is around 2019 billion TL in 160, it means that the said turnover will decrease by 2020 billion TL in 48.
REVENUES DECREASED 48 BILLION TL
Hüseyin Altaş, President of the Shopping Centers Investors Association (AYD), noted that in addition to the pandemic, foreign exchange debts also put the sector in a difficult situation. Altaş said, “Before October 2018, leases were made in dollars. Like every prudent trader, we borrowed in dollars because our income was in dollars. The amount of this debt is approximately 15 billion dollars. "Our liabilities are increasing with each passing day due to the increase in exchange rates, as our incomes are returned to TL but our debts remain in foreign currency."