By John Irish
Firm sells buildings to Great Portland Estates for £10m & future profits' share.
Dubai investment firm Istithmar World has sold two buildings in London to Great Portland Estates (GPE), its financial statements showed.
Istithmar is one of the flagship companies of state-owned Dubai World, whose real estate unit Nakheel is struggling to refinance $3.52bn Islamic bonds maturing in December.
The firm, which owns US luxury retail chain Barneys New York, in August hired an advisory firm to help it mull options to shore up Barneys' financial position.
GPE paid 10 million pounds and a share in future profits for Marcoal House on London's Regent Street and another building close to Oxford Street, according to its half-year financial statements released on Wednesday.
It did not say when the transaction was completed.
Abu Dhabi-based daily
The Nationalreported Istithmar had paid about 80 million pounds two years ago for the buildings. (Reuters)
We heard the news that WORST OF FINANCIAL STORM IN DUBAI is over but this story tells us something else.
...this shows how much they ARE suffering. Regardless of how much the Revenue Share participation brings in, a 70M GBP write off (or more than 90% write down) says how badly they need cash. This is the type of fire sale that I like to participate in!
How can a 80 million pound building become 10 million pounds in 2 years, specially in central London???????? Something fishy is going on here.