SOFAZ discloses income earned on real estate in London
Baku, Azerbaijan, Feb. 10
By Maksim Tsurkov - Trend:
As of January 1, 2016, the State Oil Fund of Azerbaijan (SOFAZ) earned around 27 million pounds on real estate in London, SOFAZ said Feb. 10.
The real estate, located at Saint James Street in London, was purchased by SOFAZ for 177.35 million pounds in 2012, the statement said.
"After the real estate was leased until late 2015, SOFAZ received income worth about 27 million pounds," the statement said. "Currently, this real estate is estimated at 213 million pounds. Taking into account the high liquidity on the real estate market in London, this asset can be sold at a specified price within a short period."
In total, as of January 1, 2016, the yield on this asset amounted to more than 30 percent.
For the first time SOFAZ bought the elite real estate in London and Moscow in 2012. SOFAZ also invested in real estate in Paris, Japan and Milan.
The assets of SOFAZ dropped by 6.38 percent as of Oct. 1, 2015 and totaled $34.74 billion compared to early 2015 ($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.
The main goals of the State Oil Fund include: accumulation of resources and the placement of its assets abroad in order to minimize the negative affect on the economy, preventing the "Dutch disease" to some extent, promoting resource accumulation for future generations and supporting current social and economic processes in Azerbaijan.