BAKU, Feb 13 (Reuters) - 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 years.
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 Alison Williams)