TÜRKİYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Special purpose vehicles (SPVs), real estate investment companies (REICs), and real estate investment funds (REIFs) are the types of entities available to investors to hold real estate assets. REICs and REIFs are preferred by real estate investors due to tax exemptions granted to such entities. REICs and REIFs are also preferable because these entities may create large-scale funds generated from the capital contributions of different investors. SPVs may also be advan - tageous as they are not subject to the restric - tions and specific conditions stipulated under the capital markets legislation, such as valuation conducted under said legislation, etc. For this reason, SPVs are commonly used in practice. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity SPVs may be incorporated as a limited liability company or a joint stock company in the form of a publicly or privately held company. REICs may be incorporated as a joint stock company in the form of a publicly held company. REIFs do not have any legal personality and may only be held by qualified investors. 5.3 REITs Real estate investment trusts (or trusts in gen - eral) are not regulated under Turkish law, and therefore, not available as an option to investors. The closest investment instrument to these is REIFs. 5.4 Minimum Capital Requirement The minimum capital requirements are as fol - lows.
administrative lawsuit to declare the administra - tive act null and void or to claim damages. Prop - erty rights-holders may challenge the denial of construction permits, unfavourable revisions to zoning plans and parcellation plans, or any other administrative act. In addition, affected third par - ties (neighbours, etc) may initiate a lawsuit for
cancellation of a construction permit. 4.6 Agreements With Local or Governmental Authorities
It is not necessary to enter into agreements with local or government authorities to develop a pro - ject. Zoning plans grant the right to undertake construction under the conditions specified in the zoning plan and no further agreement with the municipality is necessary to exercise that right. Construction requires the obtainment of a construction licence, which is not an agreement per se but rather an administrative approval pro - cess. Agreements may be necessary in an ancillary fashion, such as contractors needing to sub - scribe to utilities for consumption during the con - struction phase. Additionally, developers need to apply to the municipalities for the appointment of a licensed construction audit company. 4.7 Enforcement of Restrictions on Development and Designated Use If the planned construction does not comply with zoning conditions and designated use, the municipality will not issue a construction permit. Moreover, if the planned activities do not comply with designated use, it is not possible to obtain a workplace opening and operation permit.
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