SOFAZ expanding, buys property in Italy
Baku, Azerbaijan, Jan. 6
By Aygun Badalova - Trend:
Government investment funds in Azerbaijan, Abu Dhabi and Qatar in the past two weeks have agreed to invest a combined 350 million euros ($380 million) to buy and develop three separate properties in Milan, the Wall Street Journal reported citing a person familiar with the transactions.
The State Oil Fund of Azerbaijan (SOFAZ) is buying a building from the Italian chamber of commerce, while the Abu Dhabi Investment Authority is buying a 1960s building that will be demolished to make way for a new tower, according to the person.
On Dec. 22, the Qatar Investment Authority agreed to buy a property from BNP Paribas SA. The purchase prices weren't disclosed.
The 350 million euros includes the cost of redeveloping the three sites. All three will be managed by Italian property company Coima SGR, the person said.
SOFAZ was established in 1999 with assets of $271 million.
Based on 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.
The main goals of the State Oil Fund include: accumulation of resources and the 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.