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SOFAZ begins investing in property funds

Economy Materials 8 February 2016 15:26 (UTC +04:00)
Azerbaijan’s State Oil Fund SOFAZ began to invest in real estate funds.

Baku, Azerbaijan, Feb. 8

By Maksim Tsurkov - Trend:

Azerbaijan's State Oil Fund SOFAZ began to invest in real estate funds, the fund told Trend.

The share of funds that can be invested in real estate has been increased from five to 10 percent, SOFAZ said.

"The first stage of SOFAZ's investment strategy for the real estate had to be made by direct investments, which the Fund continues successfully," said the fund's message. "Just as the cash flows generated from these investments, positive price difference also makes an important contribution to the overall investment portfolio's profitability."

SOFAZ also said that the success of the high diversification in direct investments is ensured and in this regard the fund is already presented in the most important markets.

"The Fund's goal in this sphere is to achieve portfolio diversification by investing in real estate with low and medium risk. Even before the beginning of these investments, SOFAZ's ultimate goal was to create highly-structured portfolio, reflecting a number of areas," said the Fund.

"SOFAZ also began investing in real estate funds. These investments create great opportunities for the fund both in terms of geography and construction status (finished or under construction), assignment of real estate and will be an important tool for improving the profitability," said the fund.

In 2012, the fund, for the first time acquired elite real estate in London and Moscow, and it made investments in real estate in Paris, Japan and Milan.

SOFAZ's assets decreased by 6.38 percent and were $34.74 billion as of Oct. 1, 2015 compared to the beginning of the year ($37.1 billion).

Under SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.

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Follow the author on Twitter: @MaksimTsurkov

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