REIC SECTORS

KİLER REIC

  • Growth of the REICs The number of the real estate investment companies (REIC) that were listed in BIST on 2 January 1997 for the first time increased to 21 as of December 2010. However, in addition to the REICs listed in BIST, there are also companies that obtained certificate of incorporation and waiting for the initial public offering. Upon completion of the planned public offerings, the number and total portfolio scale of the REICs are expected to grow substantially in the upcoming years.
    REI sector is a new sector in our country, however, a remarkable amount of corporate capital entered into the sector up till the present date. Tax incentives provided by the state encouraged many companies towards incorporating real estate investment companies in order to create new financial resources through securitization of the passive real estate properties. The path to the sector has been paved for the new REICs as the real estate sector receives increased demand, corporate capital is required for meeting this demand and REICs allow small investors to invest in real estate property against small amounts. In consideration of the fact that the majority of the people in our country invest their savings in the real estate properties, it is very important to use corporate capital managed by professionals in the construction sector. REICs are expected to play an active role in the markets as a new capital market instrument allowing utilization of the corporate capital in the sector with the introduction of the long-term housing financing.