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Azerbaijani state oil fund expands scope of real estate investments

Business Materials 8 January 2013 13:59 (UTC +04:00)

Azerbaijan, Baku, Jan. 8 / Trend E. Ismayilov /

The State Oil Fund of Azerbaijan (SOFAZ) is considering an opportunity to buy property in Turkey, Singapore, Indonesia and Malaysia, SOFAZ told Trend today.

SOFAZ said that in particular variants of purchasing property in Istanbul and central cities of Singapore, Indonesia and Malaysia are being considered.

"At present, all the variants are being considered, analysed and evaluated," SOFAZ said. "Depending on the research results in this area and in accordance with SOFAZ's investment strategy for 2013, the final decision will be made."

SOFAZ said that at this stage the company is considering the variants of purchasing office real estate.

"This can be seen by the acquisitions made by the company in Europe and Russia," SOFAZ said. "The main goal is to get revenues from property rent."

According to SOFAZ's investment strategy, up to five per cent of the investment portfolio may be invested in stocks, up to five per cent in real estate and five per cent in gold.

State Oil Fund of Azerbaijan (SOFAZ) purchased Gallery Actor, mixed-use office and retail complex located on Pushkin Square. The transaction is valued at $133 million.

Earlier, 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 projected total cost (average amount) of SOFAZ's investment portfolio for 2013 was set at 25.2 billion manat, while as of late 2012 it was projected at 23 billion manat.

As of December 1, 2012, SOFAZ's assets totalled $ 33 895 million.

SOFAZ was established in 1999 when its assets amounted to $271 million.

The main purposes of the fund are: accumulation of funds and placement of the fund's assets abroad to minimise the negative impact on the economy and preventing a 'Dutch syndrome' to ensure savings for future generations and to maintain the current socio-economic standard in the country.

The official exchange rate is 0, 7848 AZN / USD as of Jan. 8.

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