Bahçeşehir's iconic shopping center Prestige Mall is ceasing operations

Prestige Mall Shopping and Life Center, which has served for many years in the Bahçeşehir Gölet area of Istanbul, is preparing to close its doors permanently at the end of this month. Following the cessation of operations by File Market as of this weekend at Prestige Mall, one of the pioneers of the luxury and boutique shopping center concept in Turkey, it has been learned that the remaining stores will also close before the end of June. Employees at the mall state that the income-expenditure balance has been disrupted and salaries have not been paid regularly. No official statement has been made by the management yet; the closing process is being carried out quietly.

While there are approximately 450 shopping centers across Turkey, the sector has been facing serious pressure for change in recent years. Digitalization, which accelerated after the pandemic, the widespread adoption of online shopping, economic contraction, and rising operating costs are putting traditional shopping malls in a difficult position. Today, approximately 50 shopping malls are unable to reach sustainable occupancy rates. Experts state that the root cause of this situation lies in the inability of shopping malls to create the right brand mix, develop a tenant profile suitable for their target audience, and respond to changing customer expectations.

THE STORY OF PRESTIGE MALL'S CHANGING HANDS

Prestige Mall was opened in 2007 by the Süzer Group, positioning itself in the luxury and boutique segment during a period when shopping mall investments gained momentum in the mid-2000s. The center, which has a total area of 25 thousand square meters and a leasable volume of 12 thousand square meters, was sold to the Irish Quinn Group for 55 million dollars shortly after its opening. In 2013, it was taken over by the Russian-capitalized MSFD Gayrimenkul A.Ş. In 2016, the mall was mentioned in connection with names involved in various corruption allegations, and a purchase attempt by businessman Mansur Topçuoğlu was reported in the press. However, this attempt was inconclusive, and ownership remained with MSFD A.Ş.

The shopping mall, which has seen a decrease in the number of visitors, a narrowing of brand diversity, and a loss of competitive power over time, has seen its occupancy rate fall below 50 percent in recent years. Employees state that the income-expenditure balance has been disrupted and salaries have been delayed for a long time. The closure of Prestige Mall shows that not only a shopping center but also an investment approach of an era is coming to an end. It is emphasized in the sector that it is becoming increasingly difficult for shopping mall projects that do not adopt innovative and multi-dimensional approaches to survive.

News Source: 12punto