State Oil Fund of the Republic of Azerbaijan, Baku, committed $100 million to Redwood Japan Logistics Fund II, a real estate fund.
The investment is consistent with its “real estate strategy of building a diversified investment portfolio across geographies, real estate types and investment strategies,” the sovereign wealth fund said in a notice on its website.
The $1 billion strategy is managed by Asia-Pacific logistics real estate developer and operator E-Shang Redwood Group. It has a target annualized net internal rate of return of 15% over five to seven years. The strategy involves the development, leasing and sale of institutional-quality logistics centers in supply constrained markets of Tokyo, Osaka and Nagoya in Japan, the notice said.
The sovereign wealth fund also said assets decreased 1.3% over the year ended Dec. 31, to $33.14 billion, according to an update on its website Tuesday.
Spokesmen could not be reached for comment by press time.