Land Securities sells its Portman House office to Libyan investor

PROPERTY giant Land Securities said yesterday it has sold its Portman House retail and office building on Oxford Street to a Libyan state-backed investor for &pound;155m.<br /><br />The multi-let building in the heart of the West End shopping district has been bought by Kinloss Property, a wholly owned subsidiary of the Libyan Foreign Investment Company.<br /><br />The asset generates a total rent of &pound;11.5m a year and is held on a long lease from The Portman Estate on a term expiring in 2152. The purchase price reflects an annual income yield of just over seven per cent.<br /><br />The acquisition of Portman House comes about six months after the Libyan Investment Authority agreed to buy a 172,000 square foot office building in the City for &pound;120m.<br /><br />Property prices in London have fallen almost 45 per cent since June 2007.