TÜRKİYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Lease A lease is the basic type of arrangement that allows a person, company or other organisation to occupy and use real estate for a limited period of time without buying it outright. Right of Construction A right of construction may also be established as a type of right in rem in order to protect the owner’s right against third parties. In practice, a right of construction is preferable to other types of real estate use because it gives property rights to the holder of the right of construction for a period. A mortgage may also be established over a right of construction as it is independently registered in the title deed registry with separate ownership rights. Usufruct Another type of right in rem is the usufruct right, which entitles the rights-holder to use and ben - efit from real property fully. The usufruct right is a right granted to a specific person and may not be transferred. It is a right that is limited in time; usufruct rights granted to legal persons are limited to 100 years, and usufruct rights granted to natural persons are limited to the grantee’s lifetime. 6.2 Types of Commercial Leases There are no different types of commercial leases. All lease agreements are governed by the same regulation. However, leases may be classified as a ground lease or a building lease according to the rental conditions. Currently, there are also ongoing discussions to amend the legislation regulating home leases and com -
• The minimum capital amount for a REIC is TRY500 million and TRY750 million for REICs incorporated for infrastructure purposes. • The minimum asset pool for a REIF should be TRY100 million within one year of initiating the sale of participation shares to qualified investors. • Joint stock companies should be incorpo - rated with a minimum capital amount of TRY250,000, one quarter of which should be paid at the time of incorporation and the rest paid within 24 months of incorporation of the company. • Limited liability companies should be incor - porated with a minimum capital amount of TRY50,000. There is no minimum payment requirement at the time of incorporation and the total capital amount should be paid within 24 months of the company’s incorporation. 5.5 Applicable Governance Requirements Corporate law provisions are applied to SPVs as they are subject to the Turkish Commercial Code, including the capital maintenance rule, corporate benefit, etc. REICs are also subject to the corporate law requirements stated under the Turkish Commercial Code. REICs and REIFs are also subject to capital markets regulations as they make use of funds provided by investors. 5.6 Annual Entity Maintenance and Accounting Compliance The amount depends on the type and size of the investment.
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