Information on Valuation Reports under Capital Markets Legislation
1) Examples of transactions for which valuation reports may be required for real estate, real estate projects, or rights and benefits based on real estate under capital markets legislation are provided below:
a) Reports prepared within the scope of Article 34 titled “Transactions Requiring Valuation” of the Communiqué III-48.1 on “Real Estate Investment Companies”,
b) Reports prepared within the scope of Article 28 titled “Transactions Requiring Valuation” of the Communiqué III-52.3 on “Real Estate Investment Funds”,
c) Reports prepared within the scope of Articles 9 (“Transactions with Related Parties”) and 10 (“Frequent and Continuous Transactions”) of the Communiqué II-17.1 on “Corporate Governance”,
ç) Reports prepared within the scope of Article 5 of the Communiqué II-23.1 on “Common Principles Regarding Significant Transactions and the Right of Withdrawal”,
d) Reports subject to special circumstance disclosures,
e) Reports prepared for issuers and capital market institutions subject to the Capital Markets Law that relate to real estate, real estate projects, rights or benefits based on real estate, as well as those determining asset impairment or the need for provisioning, etc.,
f) Reports submitted to the Capital Markets Board for approval of capital market instrument issuances and/or public disclosure documents.
2) The cases listed above are examples. Valuation reports prepared for capital market institutions, capital market instrument issuers, and publicly held companies should generally be considered as reports prepared under capital markets legislation. Therefore, the subject of valuation requested and whether it falls within the scope of capital markets legislation should be explicitly stated in the client agreement. In case of doubt, clarification should be obtained from the client regarding the scope of the valuation report. Real estate valuations conducted by banks for mortgage purposes are not within the scope of capital markets legislation. In this context, the report must clearly indicate which of the situations listed in item 1 it pertains to.
3) The name and surname of the valuation expert who prepared the report must be stated. Other assisting personnel should not be included.
4) The name and surname of the responsible valuation expert overseeing the report must be stated.
5) The final value determined as a result of the valuation report must be indicated.
