27 December 2012
Clifford Chance advises The State Oil Fund of Azerbaijan in connection with 78 St James's acquisition
Clifford Chance has advised The State Oil Fund of Azerbaijan (SOFAZ) in connection with the indirect acquisition of 78 St James's Street SW1 for £177.3 million. The office property, located in London's West End, was bought from the German open-ended fund of RREEF Real Estate, the real estate investment business of Deutsche Bank’s Asset & Wealth Management division. This represents SOFAZ's first real estate investment.
This prime asset is located in the heart of St James's, one of the most exclusive office locations within London. The property is a Grade II listed building with a modern extension (2003) to the rear. The office property totalling 118,599 square feet (11,018 square meters) is let in its entirety to HSBC until 2023.
Commenting on the transaction, lead Real Estate Partner, Mark Payne said:
"We are delighted to represent our client, SOFAZ, on this important strategic investment in the heart of London. Our role in this transaction highlights the wide-ranging capability within the firm's Real Estate practice and we look forward to continuing to work with SOFAZ on their direct and indirect investments in the real estate market."
Mark Payne was assisted by Real Estate Associates Ian Painter and Lindsay Wiltshire. Tax advice was provided by Partner, David Saleh, who was supported by Director, Simon Corzberg and Senior Associate, Alastair Alderton.
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.