The desire of companies that develop construction projects or have real estate in their portfolios and earn rental and sales income from this portfolio, wanting to benefit from both tax advantages and the advantages of public offering, forms the basis of their requests to transform into REITs. As an alternative to the REIT conversion, the real estate assets of the companies can be put into a REIF, and investors can benefit from tax advantages as in REITs. In addition, they can turn their fund shares into cash by transferring them to a qualified investor or REIF based on the value determined according to the appraisal reports. (Maximum 20% of the total fund shares can be transferred to the Fund).
The following services are provided within the scope of REIT Transformation.
• REIT transformation/incorporation transactions are a comprehensive process that requires expertise, starting with the amendment of the articles of association and ending with the public offering.
• Consultancy is given to the company during the REIT transformation/pre-establishment portfolio creation phase.
• Offers are received on behalf of the Company if requested in areas such as appraisal, independent audit, legal opinion, where outsourcing is required.
• When the optimum structure is created, the relevant applications are made by Bizim Menkul Değerler and the whole process is coordinated.
• The public offering, which is the second step of the process, is carried out by Bizim Menkul Değerler.
The REIT transformation process can vary between 6-12 months, depending on the readiness of the companies.