SOFAZ buys €135m property in Paris
Azerbaijan's state oil fund SOFAZ acquired €135 million property at 8 Place Vendôme in Paris, the Fund said on Thursday. The property offers office, retail and residential space, Trend news agency reported.
The 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.
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 strategy of SOFAZ, starting from this year, up to five per cent of the investment portfolio can be invested in real estate for the first time.
Projected total cost of the investment portfolio of SOFAZ in 2012 was set at 23 billion manats.
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.
The exchange rate for December 20 is 0,7849 AZN / USD.