The Canada Pension Plan Investment Board has committed €250 million to Multi Corporation’s development fund.
Multi Corporation, backed by Morgan Stanley Real Estate, said in a statement the C$117.4 billion ($98 billion; €67.8 billion) pension fund was the first founding investor in The Multi Retail Turkey Fund.
The fund already has 21 shopping centre development projects in the pipeline, the statement added, including the 178,000-square-metre Forum Istanbul centre, which will be the third largest mall in Europe when opened next year. Five centres are open, while another eight are under construction.
Multi said it was still in talks with a second investor to the fund and expected to close the commitment “before year end”. The firm said it could seek additional investors but would “retain majority ownership of the fund”.
Multi previously focused on the development and management of retail properties in Europe, but with backing from MSREF, Multi has expanded into investment management. Multi Turkmall, the development arm of Multi, is the developer to the retail fund.
Graeme Eadie, CPPIB senior vice-president of real estate investments said Turkey was one of the “most promising developing markets in Europe”.