SOFAZ acquires property in Paris - UPDATE - PHOTOS

The State Oil Fund of Azerbaijan (SOFAZ) acquired €135 million property (offers office, retail and residential space) at 8 Place Vendôme in Paris, the Fund informed on Thursday.

Property was acquired from AXA Real Estate Investment Managers (AXA Real Estate). SOFAZ has been advised by Cushman Wakefield and Allen&Overry.

This investment is a part of a strategy to build a diversified real estate portfolio comprised of high quality, prime assets in major cities of the world.

Paris, being the largest office market in Europe, warranted its place as one of the initial destinations for SOFAZ's investments.

According to the Fund, Place Vendôme is the most prestigious square in Paris and is widely considered as the most prime location in the city. Combining high-class offices and luxury retail brands, this micro market is highly sought after by national and international occupiers and attracts prime rental levels.

The acquired classic French Baroque mansion with the total area of 5,400 square meters was constructed in XVIII century and offers office building from the 1950's. The property offers office, retail and residential space.

This prime asset is let to various renowned financial services and legal firms as well as several high profile tenants with luxury jewellers occupying the majority of its retail space.

According to the investment policy of SOFAZ overall value of the investment portfolio can be invested into the gold, equities and real estate with maximum limit of up to 5 % per each financial too starting this year for the first time.

Projected total cost (the average amount) of the investment portfolio of SOFAZ was set at 23 billion manat as of 2012, while by the end of 2011 it was predicted at 19.4 billion manat.

It is predicted that by late 2012, SOFAZ assets reach the level of $34 billion.

As mentioned by the Fund, as of December 1, 2012, assets of SOFAZ totaled $ 33 895 million.

SOFAZ was established in 1999 when its assets amounted to $271 million.

The main purposes of the fund are: accumulation of funds and placement of the fund's assets abroad to minimize the negative impact on the economy, preventing a "Dutch syndrome" to ensure savings for future generations and to maintain the current socio-economic standard in the country.



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