London’s Gherkin skyscraper is in a bit of a pickle. The 41-storey tower is up for sale for £650m as its owners, German property investors IVG Immobilien and Mayfair investment bank Evans Randall, failed to finalise a restructuring deal.
Deloitte’s real estate arm and Savills are acting as receivers, spearheading the sale of the skyscraper.
Officially known as 30 St Mary’s Axe, the skyscraper was bought by current owners for £600m from insurers Swiss Re. The owners had to take out a £500m loan in Swiss francs to fund the deal. As the Swiss franc strengthened against the pound, the size of the debt increased, which led to the skyscraper being put on the market.
Designed by Lord Norman Foster, the building is 99% let and tenants include previous owners Swiss Re.
Savills’ partner Julian Stocks, handling the sale for Deloitte, told City A.M.: “There is nothing wrong with the building. It’s a great asset. The issue is with the capital structure and financing. If [buyers] want an interesting piece of London, this is as good as it gets”.