Dubai investment firm Istithmar World has sold two London properties for £10m ($16.6m), a huge reduction on the purchase price of £80m in May 2007.
The UK’s Great Portland Estates has purchased a special purpose vehicle which held the two properties for Istithmar, the retail and office building Marcol House and another office building on Newman Street.
The Great Portland deal involves the firm paying Istithmar £10m upfront and a share of future profits from developing the sites. Great Portland will now begin developing the two properties in early 2010 and take responsibility for financing the schemes. The company will also help restructure a £35m debt facility taken out by Istithmar on Marcol House at the time of the acquisition.
The UK company confirmed the deal on 11 November. Istithmar is part of government-owned Dubai World, which is being restructured. Dubai World said in October that it had laid off 15 per cent of its global workforce.