NEWSLETTER-2017

204 NEWSLETTER 2017 housing, and were listed in the Istanbul Securities Market ( İstanbul Menkul Kıymetler Borsası , currently known as Borsa İstanbul ). In practice, these certificates were disappointing due to the high issue price, the price for goodwill ( şerefiye ) for acquisition of the housing, impossibility to become the owner of the property before 5 years, and income below the rate of inflation 2 . The first piece of regulation was enacted by the Capital Markets Board ( Sermaye Piyasası Kurulu (“CMB”)) via the Communique Regarding the Supervision of Property Certificates by the Board (Se- rial: III, No: 19), which was published in the Official Gazette dated 20.07.1995 and numbered 22349. The only example of this commu- nique has been the property certificates issued in 1996 to finance the housing project by Türkiye Emlak Bankası A.Ş. in Istanbul Ataşehir 3 . Such practice could not continue due to the non-formation of a market price, and other elements, such as price, term and goodwill ( şerefiye ). Targets Identified with Property Certificates Through property certificates, it is especially intended to provide a source of financing to the construction sector for new housing or commercial construction projects. Another aim is to create the opportunity to invest in property for those classes without the sufficient financial background to afford the purchase price of a property via syndicated bank loan, or through their own savings, and to turn this opportunity directly into a whole property with a group of certificates by extending the investment to a longer period, or to a larger group of investors, or to sell back their certificates, and benefit from the increase in the income. In addition, it is intended that the investors engage in partnership with regard to the property income, which is subject to a speculation of increase. Final regulations also put forward the idea of creating an 2 Dolun, L. (2007). İpoteğe Dayalı Konut Kredisi (Mortgage). Ankara: Türkiye Kalkınma Bankası A.Ş. Ekonomik ve Sosyal Araştırmalar Müdürlüğü. 3 http://gazipublishing.com/media/uploads/images/GIID-MAKALELER/SAYI- 3/2016.02.02no.pdf.