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Sunday, 10 July 2011 09:42

The first REIT legislation was introduced in mid-2005 by the Capital Markets Board of Turkey / CMB who have decided that REITs must list >25% of their shares; can leverage x3 the amount of their most recently announced net asset values; are exempt from corporate & income taxes. There is no withholding tax but REITs do not have to distribute a fixed minimum of their income as dividends - although the CMB can compel all public companies to pay out a minimum in dividends (set at 20% in 2008), as cash or stock. The law has been continually refined & improved, via amendments such as those:

● Reducing IPOs to 3 months and allowing existing public companies to convert.

● Increasing the minimum starting capital from about €5.7m to €10.25m.

● Removing the requirement for shareholder pre-experience.

● Allowing REITs to own & lease & develop land subject to mortgages being <50% of the appraisal project value, and not >10% of the total net asset value.

Last Updated on Wednesday, 17 April 2013 04:40