Feb 13 2018

Istanbul mall bankrupt with $420 million debts – report

A Turkish court ruled for the bankruptcy of a shopping mall in Istanbul after it accumulated 1.59 billion liras ($420 million) of debt, news portal Internethaber reported.

The ORA mall in the city’s Bayrampasa district, with 235 shop units and a hotel, was opened in 2011 but shut its doors after less than a year as tenants began vacating the premises, the website said.  

The owner, Ora Istanbul Gayrimenkul Yatirim & Gelistirme, applied for a stay of bankruptcy in 2012. When it failed, it applied to a higher court, before the case returned to a lower court for a final verdict, which was made on Feb. 8 this year, Internethaber said.

Scores of large shopping malls have opened in major Turkish cities over the past decade, as consumer spending and construction drove economic growth.

Previous news reports said the owner of the mall borrowed several hundred million liras from Turkey's state-run Ziraat Bank. The project's failure was raised by the main opposition Republican People's Party (CHP) in parliament.