Portfolio Limitations | Nurol GYO

Portfolio Limitations

Portfolio restrictions for Real Estate Investment Trust companies are described in the law as follows:

  • They can invest 20 percent of their portfolio at maximum into real estate certificates, asset backed securities issued for mortgage loans and other securities accepted as similar by the Board.
  • They can invest 10 percent of their portfolio at maximum into capital market instruments other than those mentioned and reverse repo transactions. However, if payments for the assets in their portfolio or the cost of their projects are being made as progress billing or in installments; the excess cash stemming from the payments can be invested into repo, reverse repo, bank deposit, equity, government bond, corporate bond, mutual fund participation certificate, and other similar securities. In this case, the mentioned restrictions are not applied.
  • The amount of investment into equities and A-type mutual fund participation certificates cannot exceed 5 percent of the total portfolio value.
  • According to the REIT Communiqué, the amount of investment into foreign real estate and securities backed by foreign real estate cannot exceed 10 percent of the total portfolio value.
  • The ratio of land plots acquired and left undeveloped for more than a year in the portfolio cannot exceed 10 percent.
 

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