SOFAZ purchases real estate in Japan
By Aynur Karimova
Azerbaijan's state oil fund SOFAZ and Mitsubishi UFJ Trust and Banking Corporation have jointly acquired landmark retail property Kirarito Ginza in Tokyo, Japan for 52.3 billion yen ($43.5 million).
This is SOFAZ's first real estate investment in Japan. The property was purchased from Elliott Advisors Asia Limited and Orix Corporation.
Kirarito Ginza is located in Chou Avenue, Ginza, which is the most prestigious retail location in Japan. The property was built in 2014 and is one of the very few trophy assets recently completed in Ginza area. The gross floor area of the property is approximately 15,647 square meters. The asset is let to 47 tenants.
“We are delighted to have made our first foray into the Japanese real estate market. Our investment rationale for this asset is based on its capital preservation capacity, it is the best quality asset in the best location, coupled with its return enhancement potential over medium to long term,” Shahmar Movsumov, Executive Director of SOFAZ, said commenting on the acquisition of real estate.
SOFAZ, an entity that accumulates and manages Azerbaijan's oil and gas revenues, was established in 1999. Its investment strategy is aimed at pursuing real estate across Asian markets to diversify its portfolio.
While purchasing real estates abroad, SOFAZ prefers high quality office and retail properties in the central cities of the world countries with developed and transparent real estate markets.
Earlier SOFAZ purchased Gallery Actor, a mixed-use office and retail complex located on Pushkin Square in Moscow for $133 million, an office complex in London's West End for £177.35 million and a property in Paris for €135 million, and Pine Avenue Tower A worth $447 million in Seoul.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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