Turkey's Dogus Real Estate sets rates for foreign currency rent

Dogus Gayrimenkul Yatirim Ortakligi

02/10/2018 16:30

ISTANBUL, Oct 2 (Reuters) - Turkey's Dogus Real Estate
Investment Trust said on Tuesday it would fix exchange rates for
foreign currency rents at four of its commercial properties in
October, after Turkey banned real estate rent in foreign
currencies.
    Turkey ruled in September that property sales, rental
contracts and leasing transactions must be made in lira, halting
the use of foreign currencies for such deals in a fresh step to
support the ailing local currency.
    The currency has currently lost around 37 percent of its
value against the dollar this year on concerns over President
Tayyip Erdogan's grip on monetary policy and a diplomatic row
between Ankara and Washington.
    Dogus REIT  DGGYO.IS  said in a filing to the Istanbul
bourse that it would fix the euro exchange rate for October at
5.90 to the lira at two locations and 4.9 lira to the dollar at
the other two.
    The trust is the real estate arm of Dogus Holding
 DOGUS.UL , which operates in construction, energy, media,
tourism and automobiles, where it is the sole Turkish importer
and distributor for Volkswagen  VOWG.DE .
    Reasons for the decision were demands from the tenants with
"narrowed business volumes" and the negative effects of exchange
rates, Dogus said.
    It added that it was expecting an announcement from the
Treasury and Finance Ministry regarding cases that would be
considered exceptions to the new rent regulations.

 (Reporting by Ali Kucukgocmen
Editing by Dominic Evans)
 ((ali.kucukgocmen@thomsonreuters.com , @alikucukgocmen;
+902123507067; Reuters Messaging: Reuters Messaging:
ali.kucukgocmen.thomsonreuters.com@reuters.net))