Azernews.Az

By Aynur Jafarova

Azerbaijan's state oil fund SOFAZ considers the opportunity to invest in real estate in Australia, SOFAZ told Trend news agency on Wednesday.

"In order to build up a high quality real estate portfolio, SOFAZ will continue to invest in major countries. Particularly, the Fund will consider opportunities in the Australian commercial real estate market," SOFAZ said.

The Fund as a long-term investor seeks stability of its real estate investments and thus aims to invest in assets in developed markets with long-term profitability.

SOFAZ believes that the Australian real estate market corresponds to this characteristics and has engaged huge international capital in recent years.

The Australian market combines the growth dynamics of the Asian states, strict compliance with lessor rights, provision of long lease agreements and transparency of Western states, SOFAZ said.

This year SOFAZ representatives will pay a visit to Australia in order to meet with the leading real estate market participants including regulators and foreign investors. The main aim of this visit is to gain deeper understanding of the market.

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.

Furthermore, the Fund considers the opportunity to purchase real estate in Turkey, Singapore, Indonesia and Malaysia.

According to SOFAZ's investment strategy, up to five percent of the investment portfolio may be invested in stock, up to five percent in real estate and up to five percent in gold.

The projected total cost (average amount) of SOFAZ's investment portfolio for 2013 was set at 25.2 billion manats (around $32.1 billion) while as of late 2012 it was projected at 23 billion manats ($29.2 billion).

The currency structure of SOFAZ's investment portfolio is as follows: 50 percent of the assets can be placed in US dollars, 40 percent in euros and 5 percent in pounds. The remaining 5 per cent is reserved for the currencies of Russia, Turkey and G7 countries.

The fund was set up in December 1999 by a presidential decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of Azerbaijan. Its primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. As of January 1, 2013, the assets of SOFAZ totaled over $34.1 billion.