Currency exposure
Corio’s currency risk derives from its investments in Turkey and Bulgaria. The USD investment in Akmerkez and Adacenter are hedged by a $ 190 million loan and by a $ 81 million swap contract to avoid currency fluctuations having an impact on the group’s results. The US dollar denominated rental income comes from the shopping centres Akmerkez and Adacenter in Turkey. The value of these investments is $ 289.2 million. A 10% depreciation of the US dollar will result in a loss on the investment of € 18.2 million and in a gain on the combined hedge instruments thereon of € 17.1 million. As at 31 December 2008 these investments were covered by loans amounting to $ 304 million.
Source: Annual Report 2009, Chapter Overview & Strategy, page 18 (PDF, 13.679 kB)
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