The State Oil Fund of Azerbaijan (SOFAZ) is considering the opportunities to invest in real estate in Australia, SOFAZ told Trend on Wednesday.
"In order to build up high quality real estate portfolio SOFAZ will continue to invest across major countries and will imminently consider opportunities in Australian commercial property market," SOFAZ said.
SOFAZ stressed that it plans to travel to Australia in order to meet with the leading market participants including regulators, developers, asset owners, and overseas investors to gain deeper understanding of the market. The trip is planned to take place during the course of 2013.
According to SOFAZ, the Fund seeks stability in its real estate investments and thus, targets investments in core assets with secure long term income stream in developed markets. SOFAZ believes that Australian real estate market has these characteristics and has attracted huge wave of international capital in recent years.
"Australia, in our mind, offers the best of the two worlds; growth dynamics of the Asian countries coupled with strong landlord rights, long tenancy agreements and market transparency of the Western world," SOFAZ said.
The Fund's Australian dollar denominated fixed income portfolio, which consists of short term government securities currently weights 0.6 percent (approximately 200,000,000 AUD) of the overall assets.
In December SOFAZ purchased 100 percent of "Tverskaya,16" company, the owner of Gallery Actor, mixed-use office and retail complex located on Pushkin Square (Moscow). Earlier SOFAZ announced acquisition of property in London and Paris.
According to SOFAZ new investment guidelines, Fund is seeking to have 5 percent of its assets invested in real estate.