Listed pan-European retail property fund VastNed Retail said it has acquired a store in Istanbul for EUR 18 mln, in line with its strategy of buying high-street shops in prime locations.

The historical building is located on the Istiklal Caddesi high street, which VastNed claims is Istanbul's most popular shopping street, attracting over one million people most Saturdays. It is VastNed's fourth store in the street.

The 3,200 m2 property will be extensively renovated at an estimated cost of EUR 4.5 mln, including interest. The revamp will be completed in the autumn of 2011. The anticipated rental income will be around EUR 1.5 mln per year, taking the net yield to over 7%. At present, the property is let to various local tenants. However, following the renovation, the retail space is expected to be let to one or more international retailers.

Commenting on the deal, CEO Reinier van Gerrevink of VastNed Retail said: 'This acquisition marks a major step for us in putting the Turkish portfolio definitively on the map. We will continue our present strategy, which is to only acquire high street shops in prime locations. With the scheduled renovation we are responding to demand from international retailers for large floor areas.'