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Real estate investment funds can be established to invest in specif-
ic real estate, or without any such restriction, provided that it is speci-
fied in fund notification documents. As stated in the definition, the
transactions and assets to be found in a real estate investment fund’s
portfolio are listed in the Communiqué as follows:
• Real estates and property rights;
• Private and public debt instruments, and shares of joint-stock
companies established in Turkey, including those covered by
the privatization process;
• Foreign private and public sectors’ debt instruments and joint
stock company shares tradable within the framework of
Governmental Decree no. 32, Protection of the Value of Turkish
Currency put into force by Decree of the Council of Ministers
no. 89/14391 dated 07.08.1989;
• Time deposits and participation accounts;
• Investment fund units;
• Repurchase (repo) and reverse repurchase transactions;
• Lease certificates and real estate certificates;
• Warrants and certificates;
• Settlement and Custody Bank money market transactions;
• Cash collaterals and premiums of derivative instruments;
• Specifically designed foreign investment instruments and loan
participation notes deemed appropriate by the Board;
• Other investment instruments deemed appropriate by the Board.
In accordance with Art. 53 of the CML, Art. 5 of the Communiqué
stipulates that the fund assets are segregated from the assets of its
founder, portfolio depository and portfolio manager. Thus, this rule,
adopted for the investment funds, in general, is accepted with respect
to the real estate investment funds, as well. The fund assets shall not be
designated as collateral or pledged for purposes other than borrowing
loans and conducting hedge-fund activities with the purpose of deriv-
ative instrument transactions, provided that such transactions are con-
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