“We Shall Enter New Countries”

Multi Turkmall Board Chairman Hans Otto Nagel decided to invest in Turkey after a one day tour of Istanbul. Today, the shopping malls built by Nagel play an important role in the Turkish retail sector. Nagel says that the Turkish office is one of the most successful operations in Multi Corporation. “Now we are looking at the markets in neighboring countries. We believe very strongly in our China project. The company has nine projects which are being built and 10 which are at the development stage.

* When did you first come to Turkey?
My first visit to Turkey was in 1990. In fact, I was involved in real estate in Germany. I was an architect. But I suddenly decided to abandon everything and settle in Greece. In 1979 I bought a farm in Greece. I was very young. I had a lot of dreams. If you can have dreams and realize them then you don’t have dreams anymore. You feel a need to create a new dream.

* Why Greece?
I had a Greek neighbor in Germany and he altered the chip in my brain. Life in Greece is unlike life in either Turkey or Germany. They don’t set any barriers between each other or put people into classes. The people there really are equal. In fact, they are not, but they feel as if they are. Greece taught me this concept. This was the reason for me fleeing Germany. In Germany we first built houses and villas and then we realized commercial projects. We began to build shopping malls. We were very young and very excited. We achieved a lot of success while we were very young and suddenly became featured in magazines. Then I went to Greece. When I went to Greece I decided that I needed to do something new. I tried to learn Greek and Greek culture. But the opportunities in the country were limited and in 1990 a Greek friend of mine said: “You need to go to Turkey.” We decided to go to Istanbul and look at the potential. I only spent one day in Istanbul. I called a taxi, went to a bookstore and got hold of a city plan. Then I toured the entire city by taxi. At the end of the day, I said: “This is it. We are coming to Turkey.”

*  What was it about Istanbul which affected you?
For one thing, it is a very cosmopolitan city. In cosmopolitan cities, shopping malls are most definitely affected by the culture of that city. It is not just the culture, religion also has a considerable impact. Istanbul hosts different cultures and religions altogether. This is reflected in the culture. At the same time, there have always been good relations between Germany and Turkey. Istanbul was a market, but in the 1990s it was actually a very early market. I began operations slowly in 1995. In 1992-1993 we began to do business with Bülent Doğramacı from Bilkent University and Ersin Özince, who at the time was deputy general manager of İş Bankası. In 1992, I met with Ersin Özince in Ankara. He said that he wanted to buy some land in Kadıköy. I mean, he wanted to buy the land which is now occupied by Nautilus. We began work on Bauhaus in 1994 and on Metro, Real and Praktiker in 1995. In fact, these projects marked the beginning of a new retail system in Turkey.

* What kind of system did you bring?
Metro brought together the local retailers. Those local retail brands came to Metro and developed their own systems. This was a very important step in Turkish retailing history. In 1998, we began to make new investments and establish various shopping malls. In the 1990s, through the Metro, Tepe and Turkmall partnership, we established shopping malls in cities such as Adana and Konya. We then realized many other projects.

Turkmall now needed to be stronger from a financial perspective. So we decided that we needed a partner. We planned to grow in Europe through this partnership. Multi Corporation, which was called MDC at the time, is a company which has been very successful in western Europe. In 2003 we realized a joint initiative. Later MDC was bought by Morgan Stanley. This is how we began to do business with them. Over the last 2.5 years, Turkey has become one of our most successful offices in Europe. At the same time, we are now looking at the markets in neighboring countries. We believe very strongly in our China project.

* What do your new plans include?
In the short-term, we shall follow our ongoing projects. We have about nine projects which are at the construction stage and another 10 projects which are at the development stage. Our investments will grow and continue. We shall enter new countries.

* What are the differences in terms of the retail sector between Turkey and the rest of the world?
There are very major differences between the real sector in Turkey and in the rest of the world. Because in Central Europe there are limits and prohibitions on retailing. The standards of shopping malls in Germany are low, because the owners of the shopping malls cannot obtain permits to upgrade the malls. The standards in Turkey are very high. In our shopping malls we provide a lifestyle. The aim is not to build a classic shopping mall but to construct public space.

* How do you evaluate the projects of your rivals?
It is difficult to give an answer as I haven’t seen all of them. Some are still at the constructions stage. I have only seen İstinye Park. It is a very beautiful project. It resembles the projects we have built. Akmerkez is in any case a very classical, very good project. Akmerkez is the best project in terms of accessibility.

* Are there any differences in terms of the behavior of consumers in Turkey and those in other countries?
There are very major differences. Turks focus on quality, the Germans and British on reductions and the French on food. The quality of the food in shopping malls in France is very important and there is a wide variety of food. Food is important in Turkey. Japan is another country which attaches importance to food. The Japanese consumers focus on reductions.

* How do you see the future of the retail sector in Turkey?
Turkey still has a long way to go. All cities need leisure-focused shopping malls like our projects. It will take another 20 years to achieve all of this. We want to realize projects in Diyarbakır, Mardin and Elazığ.

 “I Shall Enter New Markets With Turkish Entrepreneurs”

“Turks Are Very Entrepreneurial”
The Turkish retail sector is still very young and has a past of 15 years at most. Turks are very entrepreneurial and the retail sector is still showing a lot of development. For example, Abdullah Kiğılı and Mustafa Taviloğlu are very competitive. They have no fear of launching new initiatives or entering new markets.

“The Target Is New Markets”
I have a dream of entering new markets together with Turkish companies. Turkey has a very important strategic position. It is possible to use Turkey’s entrepreneurial strength and enter new markets. I think that, of all the countries in Europe, Turkey has the most entrepreneurial spirit and the ability to turn this into investment.

Hande Yavuz
hyavuz@capital.com.tr