Rönesans switches entire shopping centre portfolio to green energy
Through its comprehensive sustainability projects, Rönesans Gayrimenkul Yatırım is set to power all 12 shopping centres in its portfolio entirely with green energy by next year. The company, which is making its first entry into Antalya with a USD 150 million shopping centre investment, is also continuing its office and residential project in İstanbul.As the commercial property development and investment arm of Rönesans Holding, and Türkiye’s largest commercial real estate investment trust, Rönesans Gayrimenkul Yatırım (RGY) continues its path of sustainable growth. With 740,000 square metres of gross leasable area in its portfolio, the company is a market leader not only pioneering new generation shopping centres in Türkiye, but also treating sustainability not as a responsibility, but a necessity.
We’re the only company in the world to achieve this”
Speaking at a press meeting held at Hilltown Karşıyaka in İzmir, General Manager of Rönesans Gayrimenkul Yatırım, Yağmur Yaşar, underlined the company’s strong commitment to sustainability. He stated that all 15 assets in their portfolio, including 12 shopping centres, have achieved the highest rating of ‘Outstanding’ under the BREEAM In-Use certification, a level attained by only around 1% of buildings worldwide.“BREEAM In-Use assesses buildings not only for their physical sustainability but also for how they are operated and managed,” Yaşar explained. “It evaluates criteria such as health and well-being, comfort, water and energy consumption, materials, pollution management, land use, and ecology. Globally, there are 18,135 certified BREEAM In-Use projects, 9,862 of which fall under the office and shopping centre category. Only around 1.2% of those are rated Outstanding. For our portfolio, that figure is 100%. This speaks volumes about our strength in asset management and our unwavering focus on sustainability. We manage all 15 properties in Türkiye that are certified at this level. Globally, we are the first and only company to both hold and operate 15 assets rated Outstanding.”
Rönesans Gayrimenkul Yatırım provides direct and indirect employment to 16,500 people. Yaşar highlighted gender equality as one of the company’s top priorities, adding: “We’ve achieved gender balance both on our board of directors and in our head office.”
Yağmur Yaşar also stated that through their green energy projects, they aim to meet the entire electricity demand of all their shopping centres with green, zero-carbon energy.
“From 2017 to 2024, we reduced shared area energy consumption per unit of construction area, along with related carbon emissions, by 54.9%. We have a wind power project in İzmir and a solar power project in Kırşehir. These projects will be implemented in partnership with Rönesans Enerji. The permits have been secured. With these two projects, we will be able to meet all electricity consumption across our shopping centres with green energy by 2026,” he stated.
“Guiding retailers in the right direction is key”
General Manager Yağmur Yaşar stated that they approach shopping centre management with an inclusive and holistic strategy. “We see ourselves as revenue partners of our retailers, and they see us the same way. We compare our 2,000 stores across different categories against comparable outlets and provide consultancy to help them strengthen their weak points,” he said. He shared an interesting example to illustrate his point. In one of their shopping centres in İstanbul, a men’s clothing store with an excellent location, window display and visibility was failing to reach its revenue targets. “We looked into it and saw that the product range was poor. There were missing sizes and colours, and the service quality was lacking. We shared this feedback with the brand, and they acted immediately. Within just one month, their turnover increased from TRY 900,000 to TRY 4 million. It quadrupled. In our line of work, guiding retailers in the right direction is crucial for success,” he added.
High-performing stores also mean sustainable shopping centre operations. Since Rönesans shopping centres collect rent as both a fixed amount and a share of turnover, more successful stores mean higher revenues and fewer complaints. This reinforces the strength of Rönesans Gayrimenkul Yatırım’s “partnership model”.
“We part ways with around 150 stores every year”
Yağmur Yaşar also noted that shopping centres are living organisms. “This means we need to monitor the life within them constantly. Our current occupancy rate is 98.7%, which is already the highest realistically achievable in our sector. Shopping centres that fail to reach high occupancy levels simply cannot survive. We replace around 150 of the 2,000 stores in our 12 shopping centres every year. In other words, we’re effectively renewing the equivalent of an entire shopping centre each year. To keep the organism alive, we stay in constant contact with our tenants. There are two key elements in shopping centre management. The first is enhancing the customer experience for our guests. The second is meeting the expectations of our investors,” he said.“You can eat chips at our shopping centres without concern”
He explained that their new generation shopping centres, such as Hilltown Karşıyaka, differ from first-generation malls, which are enclosed structures designed to draw customers in, keep them moving from store to store without exposure to daylight, and then make it easy for them to leave once their shopping is done. “Our new generation centres feature gardens, social spaces, and event areas.They’ve become places where people want to spend time and socialise. This transformation is reflected in the figures. Per capita spending in these centres is around 50% higher than in standard enclosed malls. That’s because people are treated like guests and enjoy a quality experience. We don’t see our visitors as customers, but as guests. And this approach goes far beyond shopping. Let me provide you with an example of our detailed approach: in our food courts, we keep fryer oil temperatures at 180°C, because anything above 200°C becomes carcinogenic. We pay attention to every detail, even the temperature of the oil used to make chips, to ensure our guests receive the best service possible. In our shopping centres, you can eat your chips without concern.”
Are rents high at shopping centres?
Yağmur Yaşar also addressed complaints about high rents in shopping centres. “In 2018, retailers were paying 13 to 14% of their turnover to shopping centres as rent and common area charges. In other words, a tenant with TRY 100,000 in sales would pay TRY 13,000 to 14,000 in rent and service fees. Since 2018, our tenants’ turnover has consistently increased above inflation. However, rents have been indexed to inflation and have not even reached those levels. As a result, the rent and service fees paid by a tenant generating TRY 100,000 in sales have now dropped to around TRY 9,000. So today, rent is no longer the main issue for retailers. The significance of rent as a problem has decreased. Supply chain issues, staffing, inventory costs, and the need for working capital have become far more pressing concerns.”In June, total turnover generated by tenants in Rönesans Gayrimenkul Yatırım’s shopping centres exceeded TRY 10.5 billion: “compared to the same month last year, this represents an average growth of around 35%. The average daily turnover per store is approximately TRY 175,000, which corresponds to around USD 4,400. In terms of both turnover and consumption, this figure is approaching European levels,” he said.
“We will soon become a dividend-paying company”
Commenting on the company’s financial performance following its initial public offering in the second half of April 2024, Rönesans Gayrimenkul Yatırım Board Member Sercan Yüksel said, “During this period, our operational profit (EBITDA) rose by 11 percentage points above inflation, reaching TRY 1.8 billion. In euro terms, this represents a 37% increase, bringing us to EUR 46.1 million. This figure indicates that we are on track to reach our 2025 EBITDA target of EUR 180 million. Thanks to our declining leverage ratio, our financing costs have decreased, which has positively impacted our cash generation capacity. Over the past two years, we have increased our revenues by 62% in euro terms, and Rönesans Gayrimenkul Yatırım will soon become a dividend-paying company,” he said.
A USD 150 Million Investment in Antalya
Rönesans Gayrimenkul Yatırım is aiming to grow through new projects. General Manager Yağmur Yaşar shared the company’s near-term plans:“Construction is ongoing for our Maltepe Park project in İstanbul, located on the same site as Maltepe Park Shopping Centre and Offices. The project consists of two residential blocks, two office blocks, and 15 retail units. Overall, construction progress currently stands at 19%, while the residential component is 49% complete. Initially, all four blocks were planned as residential, but due to a significant supply shortage and strong demand in the office market, we converted two of them into offices. In addition, we are planning to develop a shopping centre project in Konyaaltı, Antalya, which will become the third Hilltown in our portfolio. With this project, Antalya will become the eighth city where Rönesans Gayrimenkul operates. We are projecting an investment of approximately USD 150 million for this development.
We also plan to develop a residential or office project on our 23,000 square metre plots in Ümraniye. Rönesans Gayrimenkul Yatırım will continue to grow sustainably in Türkiye through both organic expansion and strategic acquisitions. As of today, we do not have any investment plans abroad.”
Rönesans Gayrimenkul Yatırım currently operates shopping centres under the Optimum, Hilltown and Piazza brands in seven cities: İstanbul, Ankara, İzmir, Adana, Kahramanmaraş, Şanlıurfa and Samsun. The portfolio also includes Maltepe Park and Kozzy Shopping Centres, as well as RönesansBiz Küçükyalı, Hilltown Office, Piazza Office and Maltepe Park Office.