The purchase by the State Oil Fund of Azerbaijan (SOFAR) of property in London for 177 million pounds is lawful, said the head of the Economic Research Center Gubad Ibadoglu, commenting the acquisition of an expensive mansion in the center of London for Turan.
Two years ago, the Fund did not have the right to invest and buy assets in the market. However, in 2011 the legal documents were amended to allow SOFAR to invest, buy assets, precious metals and real estate.
"But as far as the process is transparent, how adequate is the price of the purchased property? To answer this question, a special investigation is required," said Gubad Ibadoglu.
The economist Zohrab Ismail believes that the acquisition by SOFAR of property in London can seem a worthy investment, but this policy is incorrect. This speaks to the fact that future oil revenues can be used to buy a similar property.
"This is an evidence of not economic management, but speculative psychology," said Zohrab Ismail.
In addition, there are many questions on the acquisition itself: how transparent it was, who the mediator was, how much and how long the property can generate income, and so on. -05B04-
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