Two foreign funds with Azerbaijani capital to operate in 2017

Business Materials 8 March 2017 16:28 (UTC +04:00)

Baku, Azerbaijan, March 8

By Anvar Mammadov – Trend:

BREP Europe V and SOF XI real estate funds, established with the Azerbaijani capital, will start activity in 2017, the Azerbaijani government's report as of 2016 said.

According to the report, investments in those funds were made by the State Oil Fund of Azerbaijan (SOFAZ).

SOFAZ invested 100 million euros in BREP Europe V, while 200 million euros in SOF XI, SOFAZ told Trend.

Blackstone Real Estate Partners Europe V (BREP V) will be managed by the US Blackstone private equity fund, which has already drawn 5.5 billion euros.

SOF XI will be managed by the US Starwood company.

In total, SOFAZ invested $1.7 billion in the real estate market abroad.

As much as 69.9 percent of SOFAZ investments were placed in financial instruments for 1-5 years and 10.1 percent – for more than five years.

As of January 1, 2017, the total volume of SOFAZ investments was $33.03 billion or 99.6 percent of the total volume of assets, according to SOFAZ.

Currently, 12.2 percent of SOFAZ investments are placed in shares, 4.4 percent – in real estate and 3.4 percent – in gold.

As of Jan. 1, 2017, SOFAZ assets amounted to $33.147 billion, which is 1.27 percent less than in early 2016.

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 effect 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.