The State Oil Fund of Azerbaijan (SOFAZ) has made its first acquisition in Asia Pacific with the purchase of a trophy asset in the much sought-after central business district of Seoul, Korea.
JLL Korea Capital Markets team acted on behalf of Mirae Asset Management (who on behalf of the four owners (NongHyup Bank, NongHyup Life insurance, Woori Bank and KDB Life Insurance) sold the property, Pine Avenue Tower A, for USD 447 million to SOFAZ.
Located in the Seoul’s CBD, an area sought after by leading Korean as well as international tenants, the property was built in 2011 and is one of the very few trophy assets recently completed in the Seoul CBD area. With class A specifications, the property is well positioned to cater to the needs of discerning tenants, generating long term value. The gross floor area of the property is approximately 65,000 sqm which is solely leased to S&K Group, one of the largest conglomerates of South Korea. Net rental income of the asset is USD 23.4 million per year.
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 the oil and gas revenues of the country. The Fund’s primary objectives are to help maintain the country’s macroeconomic stability and generate wealth for present and future generations. As of March 2014, assets of SOFAZ totalled USD 34.1 billion.