Real Estate Investment Trusts in Turkey - Gayrimenkul Yatirim Ortakligi
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Turkey is a REIT leader, because Real Estate Investment Trusts in Turkey go back to July 22, 1995, with the Capital Markets Law and Communique on Principles Regarding Real Estate Investment Companies Serial VI No. 11. They are set up as corporations (joint stock company) listed on the Istanbul Stock Exchange. They are regulated primarily by the Capital Markets Board (CMB).
The Turkish Name of Real Estate Investment Trusts in Turkey is Gayrimenkul Yatirim Ortakligi
The REIT in Turkey began trading in 1997. Existing corporations can convert to REIT status. This can be for a limited or unlimited time period.
The beginning capital of a Real Estate Investment Trust in Turkey is decided by the CMB. The full name of the company must contain the words "Real Estate Investment Company." Registered shares must equal at least 25% of issued capital.
A REIT must invest at least 50% of its capital into real estate, rights to real estate and real estate projects. It is to be concerned primarily with portfolio management. A REIT in Turkey may not be involved with construction, and may not be involved with managing any hotel, hospital, shopping center, business center, commercial parks, commercial warehouses, residential sites, supermarkets, and similar types of real estate. This makes me wonder what they are allowed to invest in.
REITs in Turkey Have Restrictions on Their Activities
According to one source, it's buildings, land, development projects, real estate backed securities and government instruments. Yet recent REIT announcements mention such items as shopping centers, this is very unclear to me. They apparently can own office buildings. Luxury gated villa communities, as well as apartment building for low and middle class incomes are also mentioned.
They may invest in foreign real estate, but not more than 49% of their assets.
Dividend distribution is made annually, by the end of the fifth month at the end of their fiscal year. Distribution must be at least 20% of distributable profit.
REITs are exempt from corporate income taxes Corporate Tax Law (art. 5-d/4).
REITs in Turkey are required to publish tables of assets with fairly appraised values by certified appraisers. The government's intent here is to bring more transparency to the real estate market in general. Many private transactions are not recorded, to keep valuations low and to avoid paying taxes. But this is inefficient.
There is a Turkish REIT Association.
Real Estate Investment Trusts in Turkey:
- EGS Gayrimenkul Yatirim Ortakligi AS (EGYO)
- Atakule Gayrimenkul Yatirim Ortakligi -- diversified commercial properties
- Akfen Gayrimenkul Yatirim Ortakligi -- hotels in Russia and Turkey
- Akmerkez Gayrimenkul Yatirim Ortakligi -- owns Akmerkez Shopping Center
- Alarko Real Estate Investment -- agricultural properties and others
- Dogus Gayrimenkul Yatirim Ortakligi -- owns 2 shopping center and office complexes
- Is Gayrimenkul Yatirim Ortakligi AS -- variety of land and commercial properties
- Kiler Gayrimenkul Yatirim Ortakligi AS (KLGYO) --
- Marti Gayrimenkul Yatirim Ortakligi AS) -- a hotels and a marina
- Nurol Gayrimenkul Yatirim Ortakligi AS (NUGYO) -- a luxury residence in Ankara, Istanbul
- Pera Gayrimenkul Yatirim Ortakligi -- a variety of land and projects
- Sinpas Gayrimenkul Yatirim Ortakligi -- major luxury housing and recreation projects
- TSKB Gayrimenkul Yatirim Ortakligi AS (TSGYO) -- variety of land and properties
- Vakif Gayrimenkul Yatirim Ortakligi) -- office buildings and land
- Yapi Kredi Koray Gayrimenkul Yatirim Ortakligi) -- variety of commercial real estate properties
- >Emlak Konut Gayrimenkul Yatirim Ortakligi -- Turkey's largest REIT
- >Saglam Gayrimenkul Yatirim Ortakligi AS -- diversified REIT
There have been recent IPOs of Real Estate Investment Trusts in Turkey, aka Gayrimenkul Yatirim Ortakligi, and so I hope the REIT industry there will continue to expand.
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