Real Estate Investment Funds Brief Guide 
DEFINITION The fund is an asset which does not have a legal entity, established within the fund rules by portfolio management companies and real estate portfolio management companies which hold an operating license received from the Board in order to manage the portfolios comprised of assets and transactions specified in the communique, with the money collected from qualified investors in return for fund units, in accordance with fiduciary ownership principles and pursuant to the provisions of the Law.
LEGAL STRUCTURE General terms about management of the fund, custody of the assets, valuation principles and conditions of investing in the fund is determined in (III-52.3) Communique on Real Estate Investment Funds (Communiqué)
PORTFOLİO STRUCTURE

Funds are allowed to engage only in management of portfolios comprised of the following assets and transactions:

a) Real estates and property rights,
b) Private and public debt instruments, and shares of joint-stock companies established in Turkey, including those in the privatization process;
c) Foreign private and public debt instruments and joint-stock company shares tradable within the framework of provisions of Decree No. 32 on Protection of the Value of Turkish Currency put into force by the Decree of the Council of Ministers, dated 7 August 1989 and numbered 89/14391,;
ç) Time deposit and participation account;
d) Investment fund units;
e) Repo and reverse repo transactions;
f) Warrants and certificates;
g) Lease certificates and real estate certificates;
ğ) Settlement and Custody Bank Money transactions;
h) Cash collaterals and premiums of derivative transactions;
 ı) Specially designed foreign investment insturuments and loan participation notes deemed appropriate by the Board,
 i) Other investment instruments deemed appropriate by the Board.

PORTFOLIO SIZE Within one year as od the starting date of sales of funds units to qualified investors, fund portfolio value shall reach a minimum size of 10.000.000 TL and the cash collected from fund holders shall be invested within the portfolio restrictions set forth in the Communique.
RESPONSIBILITIES OF FOUNDER

Founder is responsible for representation, management and supervision of management of the fund, and conduct of activities in accordance with the provisions of fund rules and issue document, in such manner to protect the rights of fund unit holders.

Founder is authorized to take actions on, and dispose of, and use the rights related to, assets of the fund in 6 its own name and in the account of the fund in accordance with the applicable legislation and the fund rules. Founder may delegate portfolio management to another portfolio management company or real estate portfolio management company under an agreement signed under fourth paragraph of Article 8 of the Communiqué on Portfolio Management. During conduct of activities of the fund, the delegation of portfolio management to another portfolio manager, or outsourcing any service in this respect, shall not revoke the liabilities of the founder.

The relationship between founder and the fund unit holders shall be governed by the Law, the applicable legislation, the fund rules, the issue document and the investor agreement, and on matters on which the Law, the applicable legislation, the fund rules, the issue document and the investor agreement remain silent, the provisions of Articles 502 to 514 of the Turkish Code of Obligations dated 11/01/2011 and numbered 6098 shall be applicable by analogy.

INFORMATION DOCUMENTS

Fund information documents consist of fund rules, issue document, and if any, key investor information document.
Fund rules is an agreement which is signed between fund unit holders on one side and founder, the depositary and the portfolio manager on the other side about management of fund portfolio and functioning of the fund according to fiduciary ownership principles, and depositary of the assets pursuant to Article 56 of the Law, and management thereof in accordance with the provisions pertaining to attorney agreement, and is by nature an adhesion contract. The standard of fund rules is determined by the Board.

Fund issue document contains information on nature and sales conditions of fund. The standard of issue document is determined by the Board.
Key investor information document is a brief form showing the structure, investment strategy and risks of the fund. Founder is responsible for consistency of this form with fund rules and issue document, accuracy of its content, keeping it up to date, and damages arising from wrong, misleading or imperfect information included in this form. The standard of key investor information document is determined by the Board.