Baku, Azerbaijan, April 3
By Emil Ismayilov - Trend:
The State Oil Fund of Azerbaijan (SOFAZ) intends to continue searching for commercially attractive real estate in Asia, SOFAZ told Trend on April 2.
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 has concluded the first deal to buy an office complex in South Korea this week.
"One can not say that SOFAZ will complete the investment policy in East and South-East Asia by purchasing 'Pine Avenue Tower A' worth $ 447 million in Seoul," SOFAZ said. "It is difficult to reveal and examine the economically attractive real estate in this region, but SOFAZ will continue working in this direction."
The State Oil Fund of Azerbaijan (SOFAZ) can spend about $1 billion to purchase real estate in Asia and Australia, SOFAZ said earlier. Almost a half of the claimed investments have been already made in the purchase of real estate in Seoul.
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.
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 minimize 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 CN