Global REIT Survey 2011 - EPRA

Global REIT Survey 2011REPORTINGTurkey (REIC)2 Requirements2.1 Formalities / procedureKey requirements- Regulated and closely monitored by the Capital Markets Board (CMB).- Statutes must be in accordance with the law and the procedures of the Communiqué.- Founders must have no records of legal prosecution due to bankruptcy or other offences.According to article 6 of the Communiqué, REICs may be constituted by wayof establishing new joint stock companies, or existing joint stock companiescan convert into REICs by amending their articles of association in accordancewith the procedures of the Communiqué and CML.For the purpose of establishing a REIC, the founders are required to apply tothe CMB in order to obtain its approval for establishment with an applicationfor establishment form, the format and procedures of which are determinedby the CMB, and the documents specified in this form.For either the establishment or the conversion of a company into an REIC,CMB approval must be obtained. In order to obtain the approval for establishmentfrom the CMB, the applicant companies are required to hold thequalifications specified below:Prospective REICs have to be established in the form of joint stock compa-• nies with registered capital.Prospective REICs have to be established in order to offer the shares rep-• resenting at least 25% of the issued capital to the public within threemonths and principles determined by the Communiqué.The initial capital should not be less than TRY 21.54 million for the year• 2011. This amount is to be amended by the CMB annually.If the initial capital is less than TRY 50 million, at least 10% of the shares• representing initial capital should be issued for cash; if the initial capitalis TRY 50 million or more, at least TRY 5 million of the shares representingthe initial capital should be issued for cash.The phrase “Real Estate Investment Company” should be included in the• commercial title.An application has to be filed with the CMB for the providing of portfolio• management services.Natural person founders and the members of the board of directors of• legal person founders, other than the founders which are public entitiesand which are legal entities having the capacity of a public entity, mustmeet the conditions mentioned in the Communiqué.The articles of association of the prospective REIC have to be in confor-• mity with the provisions of CML and the Communiqué.The affirmative opinion of the CMB needs to be obtained.•In order for the approval of the transformation of other companies intoREICs, those companies should meet the following requirements;Applicant companies are required to be in the registered capital system or• should have applied to the CMB for this purpose.Applicant companies are required to declare their commitment to the CMB• that at least 25% of the issued capital of that company shall be offered to thepublic within three months and principles determined in the Communiqué.The present paid-in capital or issued capital should not be less than TRY• 21.54 million.If the present paid-in capital or issued capital is less than TRY 50 million,• at least 10% of the shares representing present paid-in capital or issuedcapital should be issued for cash.If the present paid-in capital or issued capital is TRY 50 million or more,• at least TRY 5 million of the shares representing present paid-in capital orissued capital should be issued for cash.An application needs to be filed with the CMB in order to change its com-• mercial title so that the phrase “Real Estate Investment Company” isincluded.An application needs to be filed with the CMB for the providing of portfo-• lio management services.Natural person shareholders and members of boards of directors of legal• person shareholders, other than the shareholders which are public entitiesand which are legal entities having the capacity of a public entity thathave at least 10% or more of the concerned company’s shares, must meetthe conditions mentioned in the relevant legislation.« back to content page3