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Azerbaijan’s SOFAZ Makes First Real Estate Investment in Japan

The State Oil Fund of Azerbaijan (SOFAZ) and Mitsubishi UFJ Trust and Banking Corporation have jointly acquired landmark retail property Kirarito Ginza in Tokyo, Japan, for 52.3 billion Japanese yen (nearly $444.24 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," said the SOFAZ message.

The gross floor area (GFA) of the property is approximately 15,647 square meters and the asset is let to 47 tenants.

"We are delighted to have made our first foray into the Japanese real estate market," Shahmar Movsumov, executive director of SOFAZ, said commenting on the acquisition.

"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."

As of July 1, 2015, assets of SOFAZ totaled $35 billion.

Purchase of this property was realized in accordance with the amendments under the presidential decree No 519 dated October 27, 2011 made to "Rules on management of foreign currency assets of the State Oil Fund of the Republic of Azerbaijan".

By the investment policy overall value of the investment portfolio can be invested into gold, equities and real estate with maximum limit of up to five percent per each financial tool.

The State Oil Fund of Azerbaijan, the sovereign wealth fund, was set up in December 1999 by the presidential decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of the country.

SOFAZ's primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations.

Source: Trend

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