State Oil Fund of the Republic of Azerbaijan (SOFAZ), announced on December 26, 2012 its third real estate investment, with the purchase of Gallery Actor, mixed-use office and retail complex located in Moscow central business district at 16 Tverskaya Street for USD 133 million. The seller was Metropolitan Insurance Group, part of VTB Group. Jones Lang LaSalle and ALRUD were the advisors to SOFAZ on this deal.

Gallery Actor is located in historical center of Moscow. Tverskaya Street is a prime location for exclusive hotel and office schemes as well as main Moscow street-retail destination where flagship stores of many international retailers are located. The asset is located at the intersection of Tverskaya Street and Strastnoy Boulevard, in close proximity to the Red Square and the Kremlin. Actor Gallery was built in 1881 and was completely reconstructed in 1995 behind the historical façade. The total area of the asset is 18 075 square meters, leased to a number of Russian and international occupiers. Tenants of the building include well known finance, insurance, consulting and retail companies. Total annual rent is USD 9.6 million. Unique location of the asset and strong fundamentals of Moscow office and retail market provide for secure income stream as well as substantial upside through active asset management strategy. Gallery Actor well matches real estate portfolio comprising assets in prime destinations of largest European capitals, SOFAZ started to build in 2012.

Commenting on the acquisition of the building, Mr. Shahmar Movsumov, the Executive Director of SOFAZ stated: “The acquisition of this building is another successful step towards the realization of our real estate investment strategy. This deal opens new phase in Azerbaijan-Russia economic relations, which have always enjoyed long-standing strategic partnership and relied on common historical, cultural roots. The very fact that one of the first real estate investments of the Fund is accomplished in Moscow is a true indication of SOFAZ’s intentions of long-term commitment to Russia.”

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.