Turkish gov't redefines real estate certificates, targets urban renewal projects

Image Source

The government changes to regulations concerning real estate certificates will ease funding for urban renewal projects. The new financial tool aims to quicken project terms

Wednesday, Deputy Prime Minister Nurettin Canikli announced that an official statement initiating the use of real estate certificates in urban renewal projects and developing interest-free financial tools had been published in the Official Gazette and is now effective. The new regulations define more precisely procedures and rules regarding the use of real estate certificates, basically to ease the construction sector's access to funding, while offering a new medium for investors, offering value to projects.

Canikli said that the use of real estate certificates in urban urban renewal projects would offer various opportunities. Among these, real estate certificates will provide investors with the option to merit the ownership of the property on condition that the purchaser of the certificate possesses sufficient investment size expressed in square meters. Also, according to Canikli's remarks, investors also have the option of either retaining the certificate until maturity or selling it off before the maturity date to another investor.

In addition, through the new regulations, Canikli emphasized that investors can sell off the real estate certificates before maturity on the stock exchange or can ask the firm, the issuer of the certificates, to provide them with liquidity.

Stressing the advantage of these financial instruments from the investor's side, Canikli said that the issuer of the real estate certificates would provide investors with a repurchase guarantee in certain predetermined periods. Furthermore, he added the issued certificates could be sold via the stock exchange either by the direct involvement of the issuer construction firm or via an intermediary financial institution. Thereby, the real estate certificates gain a liquid characteristic through continuous transactions on the stock exchange in accordance with negotiations among investors.

The Rest Of The Story from Daily Sabah