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legislation they are subject to, real estate certificates and fund units of
other real estate investment funds shall also be taken into considera-
tion. Despite the fact that there is a limitation regarding the fund size,
a limitation with respect to the diversity of the investment funds has not
been stipulated. In accordance with Article 18/1 of the Communiqué,
lands, registered lands, houses, offices, shopping centers, hotels, logis-
tic centers, warehouses, parking lots, hospitals and all other kinds of
similar real estates can be considered as real estate investments. With
respect to all kinds of buildings and similar other structures to be
included in the fund portfolio, the occupancy permit shall have been
received, and condominiums shall have been established. Buildings,
lands, registered lands and similar other real estates and property rights
that are pledged, or have restrictive provisions affecting the value of
the real estate, may also be included in the fund portfolio, providing
that it is specified in the mentioned fund information documents
6
.
On the other hand, the minimum fund size is another matter regu-
lated within the Communiqué. According to Article 17/1 of the
Communiqué, within one year as of the starting date of the sales of
fund units to qualified investors, a fund portfolio value shall be a min-
imum of 10,000,000 TRY, and the cash collected from fund holders
shall be invested within the portfolio restrictions set forth in the
Communiqué. If the fund portfolio value does not reach the minimum
amount by the end of the mentioned period, the fund’s investment
activities shall be terminated, and the fund rules shall be removed by
the founder from the trade registry within no later than six months.
Additionally, in accordance with the provisions found in the Fifth
Part of the Communiqué titled “Principles on Appraisal of Real
Properties,” the appraisal of the real estate investments at the end of
every calendar year made by real estate appraisal companies, as
deemed appropriate by the Board, have been made mandatory.
Conclusion
The principles of establishment, activities, and issuance of sales to
qualified investors of the fund units concerning the real estate invest-
CAPITAL MARKETS LAW
159
6
Akbulak, Yavuz
, p. 181.