Global REIT Survey 2011 - EPRA

Global REIT Survey 2011REPORTINGTurkey (REIC)An application needs to be filed to amend the articles of association tocomply with the provisions of the relevant legislation and obtain thefavourable opinion of the CMB.The CMB evaluates the application in terms of conformity to the provisionsof CML and the Communiqué. Upon obtaining the relevant approval from theCMB, an additional application shall be filed with the Ministry of Industry andCommerce requesting the approval of the amendments in the articles of associationin the case of a conversion or the approval for establishment in thecase of immediate establishment; with documents certifying that the capitalhas been paid in accordance with the provisions of the Communiqué.Share capitalThe minimum capital requirement for a REIC is TRY 21.54 million for theyear 2011. This amount is amended annually by the CMB. If the initialcapital is:less than TRY 50 million, at least 10% of the shares,• TRY 50 million or more, TRY 5 million of the shares, representing the• initial capital should be issued for cash. The shares can be issued in registeredor bearer form.2.3 Shareholder requirements / listing requirementsInstantaneously established companies shall acquire a legal identity uponregistration of the company with the Trade Registry in accordance with therelated provisions of the Turkish Commercial Code.Shareholder requirementsOnly for company founders.Listing mandatoryYesCorporations to be converted shall call the shareholders and, if necessary,the preferred stockholders of the company to a meeting in accordance witharticle 389 of the Turkish Commercial Code so that the changes in the articlesof association of the concerned company can be approved. With theapproval of the amendments and registration with the Trade Registry, theconversion transactions shall be completed.Further requirements other than those explained above may be imposed bythe CMB during the approval process.2.2 Legal form / minimum share capitalLegal formMinimum share capitalShareholder requirementsAt least one of the founders must be leader equity owner (individually or bycoming together owning shares equals to at least 20% of capital).It is required in the real estate investment companies that:Real or legal person founders must not have any payable tax and insur-• ance premium debt.Leader equity owners and real or legal founders that will have 10% or• more of the capital shares must provide the required sources obtainedfrom their own commercial, industrial, and other legal activities as freefrom any debt.Leader equity owners and real of legal founders that will have 10% or• more of the capital shares must have the good repute as required by theirstatus.Joint stock companyTRY 21.54 millionThere are no restrictions on foreign shareholders.Legal formThe general guidelines of joint stock companies are regulated with the TurkishCommercial Code. REIC specifics shall be determined by the Capital MarketLaws and the Communiqué. The company’s name must include “realestate investment company”.Listing requirementsAt least 25% of the REIC’s shares should be offered to the public. REICs areobligated to apply to CMB for offering share certificates representing 25% oftheir capital to the public within three months« back to content page4