The State Oil Fund of Azerbaijan (SOFAZ) announces that it has reached an agreement to buy the prime office and retail property, 8 Place Vendôme, for €135 million from AXA Real Estate Investment Managers (AXA Real Estate). SOFAZ has been advised by Cushman Wakefield and Allen&Overry.

SOFAZ has acquired the building as partof its strategy to build a diversified real estate portfolio comprised of high quality, prime assets in major cities of the world. Paris, being the largest office market in Europe, warranted its place as one of the initial destinations for SOFAZ’s investments.

Place Vendôme is the most prestigious square in Paris and is widely considered as the most prime location in the city. Combining high-class offices and luxury retail brands, this micro market is highly sought after by national and international occupiers and attracts prime rental levels. The elegant and distinctive architecture of the square is considered a masterpiece of French Classicism.

8 Place Vendôme offers office, retail and residential space within an iconic 18th century mansion as well as an office building from the 1950’s. Constructed in 1712, the classic French Baroque mansion forms a part of the iconic Place Vendôme, which was built in honour of the Sun King Louis XIV. The total area of this prime asset is 5,400 square meters and is let to various renowned financial services and legal firms as well as several high profile tenants with luxury jewellers occupying the majority of its retail space.

Commenting on the sale, Israfil Mammadov, CIO of SOFAZ said: “With these recent real estate transactions SOFAZ has established its presence in two main commercial centers of Europe – London and Paris. Next year we will continue building our globally diversified real estate portfolio reflecting our investment strategy that foresees investments in core prime office space with strong fundamentals.”

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. The Fund’s primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. As of 01 December, 2012, assets of SOFAZ totalled USD 33 895 mln. Purchase of this property was realised in accordance with the amendments under the Presidential decree № 519 dated October 27th, 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 the gold, equities and real estate with maximum limit of up to 5 % per each financial tool.