Istithmar Said to Sell London Office Building for $272 Million

Aug. 11 (Bloomberg) -- Istithmar World PJSC of Dubai sold an office building on London’s Trafalgar Square for about 172 million pounds ($272 million), a person with knowledge of the transaction said.

The 200,000 square-foot (18,600 square-meter) property known as Grand Buildings was bought by a private Russian investor, said the person, who declined to be identified, because the information isn’t public. Istithmar, a unit of Dubai World, bought the West End building in 2005 for 155 million pounds.

Dubai World, which manages a group of businesses for the sheikhdom’s government, has said it plans to sell assets to repay creditors as it seeks to renegotiate the terms of $23.5 billion in debt. Istithmar sold two properties in the same district to Great Portland Estates Plc in November for 10 million pounds plus a share of the buildings’ future profits.

The building at One Trafalgar Square was constructed in the 1870s and also includes shops.

A spokesman for Dubai World, who preferred not to be identified, declined to comment on the deal.

Property Week reported the sale yesterday.

To contact the reporter on this story: Chris Bourke in London at cbourke4@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.