Company Profile
Development of REITS
Development of REITS

REITs entered the Istanbul Stock Exchange in 1997 after their legal infrastructure had been completed by the Capital Markets Board in 1995. The exemption of corporate tax according to the Corporate Tax Law Clause 8/4 in order to encourage the institutionalization in the real estate market has been the factor of attraction for the further development of the sector. In 2004, Capital Market Regulations about REITs were mostly changed and expanding areas for investment, clauses about the protection of investors and the excercise of corporate governance principles were added to the Code. With the latest ammendments at the end of the year 2009, the time frame given to a REIT following the incorporation for the application to the CMB for an IPO has been limited to 3 months, on the other hand, the minimum amount of shares for the public offering was decreased to 25% from 49%. 

In Turkey, real estate sector is a significant area of investment for a large part of the population. Therefore, the role of REITs in terms of the management of large real estate portfolios may be crucial for investors looking for reliable and liquid investment alternatives in the real estate sector. After having made investments to core rental real estate portfolios formerly, REITs in the last years have grown to be developers of new residential and commercial projects (shopping malls, office buildings, tourism facilities etc.) which raised attraction to the sector.