Real estate investment funds are established by licensed portfolio management companies under the permission, audit and supervision of the Capital Markets Board under the Capital Markets Law. All transactions made by the REIFs are shared with the investors through Public Disclosure Platform (PDP) and Central Securities Depository (CSD) tools.
In order for an immovable to be included in the REIF's portfolio, it must be completed, its occupancy permit has been obtained, its value assessment has been made by independent institutions and its profit potential has been confirmed. The immovables to be included in the REIF's portfolio do not carry risks such as incompleteness, non-delivery or contractor risk.
Since the fund assets are separate from the founder and custodian assets, in case of the founder or custodian bankruptcy or their management and audit are publicized, it cannot be seized, restricted, or be subject to bankruptcy.
Real estate investment funds provide significant tax advantages compared to traditional real estate investments. While the REIF profits are subject to income / corporate tax or exempt from tax, -depending on whether the investor is a real or legal person and residing at home or abroad-, the real estate investment fund itself is exempt from corporate tax.
REIFs are managed by professional teams that have the knowledge, skill and experience required for portfolio management. All operational, financial and legal trackings of the fund assets are provided by the portfolio management company.
Portfolio and management operation of REIF are constantly audited by Independent Audit, Risk Management, Internal Control and Inspection institutions. The compliance of the produced reports with the conditions described in the relevant regulations and official statements is checked periodically.
When the investor wants to leave the fund, it is very flexible when compared to selling a property they own. In such a case, the investor can leave the fund immediately by providing the exit conditions described in the bylaw or transferring their participation shares to another real / legal person.
Since the real estate investment funds act as large investments that are formed by a combination of small investments, it can carry out investments that individual investors cannot achieve alone; they offer high return potential with lower cost.