NEWSLETTER-2017

Property Certificates* Att. Ozgur Kocabasoglu “Property certificate” stands for capital markets instruments with equal nominal value representing a specific independent section ( bağımsız bölüm ), or a certain area of an independent section ( bağımsız bölüm ) of a property project, where the issue price of these certificates is used to finance an ongoing or upcoming property project. Similar Examples of Property Certificates in the World Property derivatives seen in different examples in England, Aus- tralia and the United States of America are similar to the property cer- tificates that are intended to be rendered active in practice in Turkey, again. A typical property derivative transaction is the means to achieve securitization based on property via income, interest or swap 1 . Development of Property Certificates in Turkey Housing certificates set the pioneering example of the property certificates commonly used throughout the World, and especially in the United States. Housing certificates, which are similar to the prop- erty certificates, were initially regulated in 1989; whereas, property certificate regulations were legislated in 1995 amongst the capital markets laws and regulations. Housing certificates were first issued in 1989 by the Housing Development Administration of Turkey ( Başbakanlık Toplu Konut ve Kamu Ortaklığı İdaresi (“TOKİ”)), where the first example of its use was the İstanbul Halkalı Mass Housing Certificates. The said certifi- cates were issued in return for 1 m2 each for 250,000 m2 of this mass * Article of March 2017 1 Henderson on Derivatives > Part II The technology, the products and the ISDA definitions > Chapter 3 The third and fourth waves of innovation > Property index derivatives.