Amendments to the Incorporation Terms of Real Estate Investment Companies

Communiqué on the Amendment to the Communiqué on Principles regarding Real Estate Investment Companies (Serial: VI, No: 26) (“Amendment Communiqué”) has been published in the Official Gazette on December 31, 2009 entered into force on the same date.
Article 2 of the Amendment Communiqué respects to the principal favouring shareholders of the Real Estate Investment Companies (“REIC”) that are incorporated in accordance with the instant incorporation procedure, which is determined in the Article 6 of the Communiqué, must offer a proportion of their issued capitals to the public on a minimum amount. However, it decreases this statutory minimum amount from 49% to 25% of the issued capital. In addition, as also provided for the companies converted into REICs, they shall commit to the Capital Markets Board (“Board”) to offer shares to the public corresponding to 25% of the whole capital prior to the realization of conversion. The 25% minimum offering amount is effective for either the companies established as REICs or the companies converted into REICs.
Moreover, Article 6 of the Communiqué is amended providing as initial capital of REICs to be incorporated or the paid-in capitals and equity capitals of the companies to be converted to the REICs are increased to the TRY 20,000,000.00.- from TRY 11,200,000.00.- for the year 2009.
The new version of Article 6 of the Communiqué also removes the restriction that in case a company converts into a REIC, shares of such company shall not be  already offered to public and/or such company shall not be a publicly-held company.
Besides, as an incorporation requirement it is provided that shareholders and managers of REICs that apply for incorporation or conversion must have the required conditions stipulated by the Communiqué and the assets in their portfolios and shares of these assets in the portfolios shall be in line with the restrictions determined under the Communiqué.


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