BAKU, Azerbaijan, July 2
By Nargiz Ismayilova - Trend:
The real estate portfolio of the State Oil Fund of Azerbaijan (SOFAZ), taking into account the cash balances in the current accounts of fund abroad, is estimated at $2.7 billion as of December 31, 2019, which is 26 percent more compared to December 31, 2018, Trend reports citing the Chamber of Accounts on SOFAZ’s budget execution for 2019.
At the end of 2018, SOFAZ's investment in real estate abroad, taking into account cash balances on current accounts, was $2.1 billion.
As of December 31, 2019, direct investments in the structure of the investment portfolio amounted to over $1 billion, investments in debt funds - $79.8 million, joint investments - $395.4 million and investments through funds - $1.1 billion. Some 39 percent of direct investments accounted for the real estate portfolio, taking into account cash balances in current accounts, 3 percent of investments – for debt funds, 43 percent - through funds and 15 percent – for joint investments.
In return on real estate portfolio, direct investments in real estate amounted to 6.9 percent, investments through funds - 10.44 percent, debt funds - 4.72 percent, joint investments - 3.34 percent. In general, the return on real estate portfolio excluding exchange rate differences amounted to 7.35 percent.
In 2019, SOFAZ's net investment in real estate acquisition amounted to $406.6 million.
The SOFAZ invested $2.5 billion in real estate acquisition in London, Moscow, Paris, Milan, Seoul, and Tokyo last year.
Moreover, SOFAZ's portfolio of assets includes funds managed by PGIM Real Estate, AXA Investment Management, PAG Real Estate, E-Shang Redwood, Gaw Capital Partners, BlackStone Real Estate, Walton Street Capital and Blackrock Fund Managers Limited investment companies.
Together with PGIM Real Estate, Blackrock Fund Managers Limited, Walton Street Capital and Gaw Capital Partners, the SOFAZ also made joint investments in real estate.
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