The Capital Markets Board Principle Decision on the Inclusion of Derelict or Demolished Structures as Land in the Portfolios of Real Estate Investment Funds Has Been Published
Regarding the evaluation of structures within the portfolios of Real Estate Investment Funds (“REIFs”) that are derelict, have reached the end of their economic life, generate no income, are registered as risky structures in land registry records, or have been physically demolished, the Capital Markets Board (“Board”) published its Principle Decision dated 17.07.2025, and numbered 40/1271 (the “Principle Decision”) in Bulletin No. 2025/39 dated 17.07.2025.
The regulations introduced under the Principle Decision are summarized below for your information.
New Flexibility Introduced for the Inclusion of Land Parcels in the Portfolios of REIFs
With the Principle Decision, an important flexibility has been introduced regarding the inclusion in portfolios of real estate owned by REIFs that contain derelict, economically obsolete, physically demolished, or income-generating-impaired structures.
Within this framework, provided that the following conditions are met, the relevant immovables may be included in the portfolios of REIFs as land, without being subject to the obligations set forth under paragraph (b) of the first clause of Article 18 of the Communiqué on Principles Regarding Real Estate Investment Funds No. III-52.3, which require obtaining a building occupancy permit and establishing condominium ownership.
• The presence of structures on the immovables that are derelict, have reached the end of their economic life, generate no income, are registered as risky structures in the land registry records, or have been physically demolished despite still appearing as existing in the land registry;
• The confirmation of this situation through a real estate appraisal report;
• The declaration to the Board that these structures will be demolished; and
• If necessary, the notification to the Board that the necessary changes will be made to the real estate’s registration status.
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