Frequently Asked Questions
- Real Estate Investment Trust (REIT) is a financial instrument where investors come together to form a portfolio, and a large portion of this portfolio is invested in real estate assets. These funds allow investors to access the real estate market with small amounts of capital and diversify their portfolios.
- Real Estate Investment Trust (REIT) is an investment vehicle where a group of investors come together to form a portfolio, which is typically invested in real estate assets for appreciation. These funds can invest in various types of real estate, such as commercial buildings, residential properties, shopping centers, hotels, or industrial properties.
Authorized by the Capital Markets Board:
- Portfolio management companies.
- Real estate and venture capital portfolio management companies may be established.
In order to obtain the establishment permit of the fund, the Internal Regulations and Offering Document must be approved by the Board.
Only qualified investors can invest in funds.
In addition to institutional investors such as banks, brokerage firms, and insurance companies; individuals with a total financial asset value, including cash deposits and capital market instruments, exceeding 1,000,000 Turkish Liras are defined as qualified investors.
- You can perform the purchase and sale transactions of fund participation shares by contacting us.
- Investors can perform these transactions by contacting the portfolio management company, which is the fund founder.
In indefinite funds, exit can be made by returning to the fund within the framework of the principles specified in the prospectus or by transferring the shares to third-party qualified investors. In fixed-term funds, exit is automatically made after the term ends.
It is necessary to determine the principles regarding the sale and return of participation shares in accordance with the structure of the fund portfolio.
Returning participation shares to the fund can be realized by returning the participation shares to the fund in accordance with the principles specified in the prospectus or by converting the participation shares into equity shares corresponding to the investors.
For the transfer of participation shares among qualified investors, the acquiring investors must possess qualified investor characteristics.
The principles regarding the issuance of participation shares, their sale to qualified investors, informing of the investors, liquidation, and termination are regulated in the relevant Communiqué.
Except for obtaining credit, derivative transactions, short selling transactions, or similar transactions for which there are provisions in the internal regulations and prospectus; the fund assets cannot be pledged or encumbered, even if the management or supervision of the fund's assets by the founder and custodian is transferred to public institutions.
Even if the management or supervision of the fund's assets by the founder and custodian is transferred to public institutions, it cannot be disposed of for any other purpose, including the collection of public receivables, cannot be seized, cannot be subject to interim measures, and cannot be included in the bankruptcy estate.
The receivables and obligations of the founder and the third parties with the funds cannot be set off against each other.
- The areas and limits where REITs can invest are clearly specified in the relevant regulation.
- At least 80% of the total value of the fund must consist of real estate investments.
- According to the legislation they are subject to, up to 20% of the total value of the fund can be invested in the shares of joint-stock companies whose total assets constantly consist of at least 75% of domestic real estate investments, and up to the amount determined in their financial statements prepared.
- With at least 80% of the aim to earn trading profit or rental income; Land, Land, Housing, Office, Shopping Center, Hotel, Logistics Center, Warehouse, Park, Hospital, and similar all kinds of real estate can be purchased, sold, leased, leased, and can promise to buy or sell.
- Up to 20% of the total value of the fund; Private Sector And Public Debt Securities, Time Deposits And Participation Accounts, Investment Fund Participation Shares, Repo And Reverse Repo Transactions, Lease Certificates, Warrants and Certificates and Other Investment Instruments Approved by the Capital Markets Board can be included in the fund portfolio by investing.
Allocated real estate investment funds can be established for real persons or legal entities with a large-scale real estate network. The Fund undertakes the entire management of the real estate, including the physical problems, rental, operation and maintenance of the real estate in which it invests.
Compared to direct investments in real estate, REIFs offer many advantages.
Some of these include:
- Liquidity
- Transparency
- Tax benefits
- Access to hard-to-access real estate
- Regular income
- Professional management
- Portfolio diversification
Although real estate investments are very popular in our country, they bring with them a number of disadvantages such as renting out real estate, following their payments, and maintaining them. At the same time, the size of the amount required for real estate investment is an important problem.
Real estate investment funds, on the other hand, allow investors to invest in a large number of large-scale real estate in the fund's portfolio. Thanks to diversity, the investor minimizes his risks. REIF uses professional management to control its expenses, maximize rents and occupancy rates, and sometimes acquire additional property.
Additionally, since the management of the real estate, including leasing, operation, and maintenance, is undertaken by the fund, investors save on operational costs and time.
REIF investors share in the rental income and value increase of the real estate in the fund's portfolio.
It is possible to acquire Turkish citizenship (provided that REIFs or GSYFs of $ 500,000 or more are held for at least three years).
In case of urgent need for cash, it is possible to sell the participation share as much as the cash needed instead of selling the entire real estate.
Advantages for Investors
Advantages provided to domestic investors
- It is advantageous due to taxes. (Stamp, corporate, real estate value increase tax are exempted.)
- It eliminates the problems that may occur due to inheritance.
- You do not have to deal with problems such as foreclosure and mortgages.
- Transparent auditing environment is provided.
- It is easier to turn risks into advantages.
- Legal assurance is one of the biggest advantages.
Advantages provided to foreign investors
People who are not citizens of the Republic of Turkey and who want to invest by purchasing real estate in Turkey may sometimes encounter legal problems. Not all foreigners; Only citizens of countries designated by the Presidency can acquire real estate in Turkey. Citizens of some countries on this list may also need to obtain a residence permit before obtaining real estate. Real estate transfer transactions can only be made at the land registry office. The only option for foreign investors who want to invest without coming to Turkey is to have this process done by proxy. This situation can pose a problem for foreign investors. When an investment is made through a real estate investment fund, there is no concern.
Advantages in inheritance management
When the owner of the immovables in the portfolio of the real estate investment fund dies, the transfer of the participation certificates is carried out instead of the transfer and distribution processes of the real estates. This is advantageous as it is a much more practical method.
Venture Capital Investment Funds (VCIFs) are financial instruments created to provide capital to innovative companies that are generally in the early stages or in the growth stages and to support their growth processes by investing in young startups. These funds aim to get a share of the rapid growth and development potential of these companies by investing the capital they collect from investors in young and potentially high-yield companies.
A Venture Capital Investment Fund (VCIF) is a type of investment fund that is generally established to provide capital to new and growing companies. These funds provide venture capital support by investing in companies that are young and potentially capable of growing quickly. VCIFs can often raise capital from a variety of investor sources, such as private investors, institutional investors, family offices, and venture capital firms. Venture Capital Investment Funds play an important role in providing capital for entrepreneurs, supporting innovation, and offering financial support to growing companies. These funds often focus on investments that involve risk but also have the potential for high returns.
High Return Potential: Venture capital investment funds aim to enable returneters to earn high returns by investing in high-potential business ideas.
Diversification: Invests in many companies in different industries. In this way, it helps investors reduce their risks by diversifying their portfolios.
Professional Management Advantage: Venture capital investment funds put investment decisions in the hands of professional managers. This also eliminates the need for investors to conduct their own research.
Early-Stage Investments: One advantage of venture capital investment funds is that they invest in early stage companies. With this situation, the formation of a financing environment for entrepreneurs to realize their business ideas is one of the advantages of venture capital investment funds.
Exit Strategies: Another advantage of a venture capital investment fund is that if the conditions written in the issuance document are met, they can exit their investments and realize returns.