BAKU Feb 13 Azerbaijan's state oil fund SOFAZ
has committed $100 million into the Redwood Japan Logistics Fund
II, SOFAZ said on Monday, as it further diversifies its assets.
The $35-billion SOFAZ, which holds proceeds from oil
contracts, oil and gas sales, transit fees and other revenue,
uses income from investments to pay for infrastructure projects.
Redwood Japan Logistics Fund II is managed by E-Shang
Redwood Group, a leading Asia Pacific logistics real estate
developer and operator, which invests in and operates projects
across China, Japan, South Korea, and Australia. Its total size
is $1 billion.
"This investment is consistent with SOFAZ's real estate
strategy of building a diversified investment portfolio across
geographies, real estate types and investment strategies," SOFAZ
said in a statement.
It said the fund had a target net internal rate of return
for investors of 15 percent, with a life-span of five to seven
SOFAZ's deputy CEO Israfil Mammadov told Reuters in December
that the fund planned to increase the proportion of public and
private equities in its investment portfolio.
(Reporting by Nailia Bagirova and Margarita Antidze; Editing by