Baku, Azerbaijan, Feb. 26
By Emil Ismayilov - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) can spend about $1 billion to purchase real estate in Asia and Australia, SOFAZ told Trend on Feb. 25.
Singapore, Malaysia, South Korea, Japan and China, as well as Australia are being considered as the potential of countries in which SOFAZ may acquire real estate, the interlocutor said.
"The process of searching and considering the variants of purchasing property in these countries is being considered," SOFAZ said. "It is difficult to talk about the exact date of the purchase."
The announced figure is approximate. There is no necessity for these investment plans to be implemented during 2014, SOFAZ said.
"SOFAZ has plans to buy real estate within a specified amount, but the period of making investments is not determined by the specific timeframe," SOFAZ added.
For the first time up to five percent of the fund's total investment portfolio has been invested in stocks, up to five percent in real estate and five percent in gold since 2012, according to SOFAZ's investment strategy.
As of 2013, some 3.3 percent of SOFAZ's investment portfolio was invested in gold, 1.8 percent in real estate and 4.1 percent in shares.
SOFAZ's latest acquisition was Gallery Actor, a mixed-use office and retail complex located on Pushkin Square in Moscow. The transaction was valued at $133 million.
SOFAZ announced its purchase of an office complex in London's West End for £177.35 million, as well as a €135 million property in Paris.
The State Oil Fund was established in 1999 and its assets at that time amounted to $271 million. As of January 1, 2014, SOFAZ assets increased by 5.1 percent compared to $34.129.4 billion in early 2013 amounting to $35.877.5 billion.
The main goals of the State Oil Fund include accumulation of resources and placement of the Fund's assets abroad in order to minimise the negative affect on the economy, the prevention of 'Dutch disease to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
Translated by NH
Edited by SM