The highest increase was recorded in Kirarito Ginza in Tokyo, Japan. Annual average rental fee for 1m² increased 41.6% to $1.249. In 2015, SOFAZ earned JPY 722,169,920 or AZN 10,820,994. If the increase remains stable, SOFAZ will earn over AZN 15 million.
Another increase was recorded in a real estate in Milan, Italy. The rental fee for 1m² rose 19.7% to $1,239. SOFAZ reached an agreement on purchase of Palazzo Turati office building in Milan from Texnoholding S.P.A. for EUR 97 million.
Moreover, the rental fee for 1m² in Pine Avenue Tower A in Seoul, South Korea surged 2.9% to $908. In 2015, SOFAZ earned KRW 31,071,645,406 or AZN 41,542,790. If the increase remains stable, SOFAZ will earn over AZN 2 million.
The rental fee in a real estate located in Avenue des Champs Elysees, Paris, France dropped 0.3% to $1,368 a 1m². SOFAZ earned EUR 5,860,400 or AZN 10,015,423 from this property in 2015.
The rental fee in a real estate located in New Bond Street, London, UK slid 2.9% to $1,283. SOFAZ owns an office complex in Saint James 72, London and earned GBP 9,648,048 or AZN 19,896,204 from this property. Earlier, Bloomberg reported that the central London’s best offices may lose as much as 30 percent of their value by the end of next year before the U.K. bounces back to beat continental Europe for the rest of the decade.
A decline in U.K. commercial-property values will accelerate in 2017, with parts of the London center seeing a much sharper drop than the average of 10 percent to 15 percent, the German bank’s asset management unit said in a report on Thursday. Simon Wallace, head of alternative asset research at the unit, said the fall could reach 30 percent: “We recommend investors start preparing to re-enter the U.K. market by the latter part of 2017, focusing on the best buildings in central locations.”
Totally, in 2015, SOFAZ earned AZN 90,702,203 from rent of offices abroad.