Establishment of REIT (Real Estate Investment Trust) Transformation / REIF (Real Estate Investment Fund)
Why REIT Transformation / REIF Establishment?
The fact that companies that develop construction projects or have real estate in their portfolios and earn rental and sales revenue from this portfolio want to benefit from both tax and IPO advantages constitute the basis of their demands to transform into REIT. As an alternative to REIT transformation, real estate assets of companies can be invested in a REIF with capital in kind and investors can benefit from tax advantages as in REIT. In addition, they can convert their fund shares into cash by transferring them to a qualified investor or REIT over the value determined according to the expertise reports. (Maximum 20% of the fund shares can be transferred to the Fund).
The following services are provided within the scope of REIT Transformation.
- REIT transformation / establishment procedures are a comprehensive process that requires expertise starting from the amendment of the articles of association and completed with public offering.
- Consultancy is provided to the company during the process of creating a portfolio before REIT transformation / establishment.
- Prudens gets proposals on behalf of the Company, if requested in areas such as expertise, independent audit, and legal opinion that require outsourcing.
- When the optimum structure is established, the relevant applications are made by an appropriate intermediary institution and the coordination of the whole process is carried out by Prudens.
- In case of working together, the second step of the process, the public offering, is also carried out by the intermediary institution.
REIT transformation process may vary between 6-12 months depending on the readiness of the companies.