BAKU, Azerbaijan, Nov. 3
Trend:
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) is pleased to announce the sale of Pine Avenue Tower A, a 25-storey office building located in Seoul’s CBD submarket, for 521.5 billion ($354,690) South Korean Won (to Shinhan Card, the major tenant at the building.
Completed in 2011, the building maintained high occupancy levels and provided SOFAZ with a stable income stream. SOFAZ purchased the asset in March 2014 for 470 billion South Korean Won ($319,665). The total return from the sale was 36.2 percent (Income return 31.4 percent, capital return 4.8 percent).
Israfil Mammadov, the executive director of SOFAZ, said, “Pine Avenue Tower A was a great opportunity for us to acquire a Class-A building at an attractive basis and to capitalize on the tremendous momentum in the property market. Its successful disposition has validated this strategy and delivered strong risk-adjusted returns."
Furthermore, he added that, this sale demonstrates the resilient fundamentals of the real estate market, despite the challenging circumstances due to COVID-19. This direct asset sale is in line with the SOFAZ revised portfolio strategy that focuses on indirect real estate investments.