What is Real Estate Investment Fund

1-What is a Real Estate Investment Fund (REIF)?

Real estate Investment funds are a corporate structure that enables individual savings to be brought together and used collectively by professionals in real estate investments.

2-Who can set up a fund?

Funds can be established by CMB Licensed Real Estate Portfolio Management Companies (REPM) or Portfolio Management Companies (PMC). In order to obtain the foundation permission of the fund, the Internal Bylaws and Issue Documents must be approved by the board.

3-What are Fund Investments?

-For the purpose of obtaining fund, trading profit or rental income; land, land, residence, office, shopping mall, hotel, logistics center, warehouse, park, hospital etc. can buy, sell, rent, lease and promise to buy or sell any type of real estate.

4-How is the Value of the Real Estate in the Fund Portfolio Determined?

- In the calculation of the fund unit share value, the value of the real estates in the fund portfolio will be appreciated by the valuation firms licensed by the CMB.

5-Do the Funds Have a Certain Term?

-There are two different types of funds, either for a period of time or for an indefinite period. In line with the investment strategies of the funds, the type of fund is determined according to its duration. While time-limited funds are liquidated at the end of a certain period, in perpetual funds, the fund is permanent, but is terminated by the joint decision of the investors or the liquidation decision of the CMB.

Entry and exit can be made according to the principles specified in the bylaws and issue document of the fund that the investor intends to participate in.

Ahmet Tekin-Business Development and Investor Relations Assistant Specialist