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COMMERC I AL LAW
53
Infrastructure Real Estate Investment Trusts
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A real estate investment trust (hereinafter referred to as the “REIT”) is
a corporation or a business trust that combines the capital of many investors
to acquire (or provide financing for) various real estate assets. REIT is
introduced in 1994 to the Turkish legal system to provide investors with
the opportunity to participate in the benefits of ownership of larger-scale
commercial real estate or mortgage lending and to receive an enhanced
return as the income is not taxed at the REIT entity level. REITs not only
offer to investors current income and liquidity as the shares of publicly
traded REITs are readily converted into cash, but also professional
management and performance monitoring.
In 2009, the Capital Markets Board (hereinafter referred to as the
“Board”) has introduced infrastructure real estate investment trust with
the Communiqué on Principles Regarding Infrastructure Real Estate
Investment Trusts (Track VI, No: 24) (hereinafter referred to as the
“Communiqué”). The purpose of the Communiqué is to regulate the
principles and procedures with regard to founders and establishment
procedures, licensing of portfolio management activity, organizational
structure, registration of securities with the Board, investment activities,
obligations concerning public disclosure and the information policy of
infrastructure real estate investment trust.
An infrastructure real estate investment trust is a special type of real
estate investment trust for infrastructure investment and services defined
in the Communiqué as agricultural, irrigational, mining, manufacturing,
energy, transport, communication, information technology, tourism,
housing, cultural, rural and urban infrastructure investment, and
services conducted by public administrations affiliated with the central
government, social security institutions, local administrations and
state economic enterprises, as well as municipal services, urbanization,
environment, research & development services, education, health, justice,
security and general administration infrastructure investment and services.
Infrastructure real estate investment trusts (hereinafter referred to as the
“IIT”) are the corporations whose scope is to manage portfolios consisting
of assets invested within the scope of article 19 of this Communiqué.
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Article of February 2010