London’s ‘Gherkin’ tower, properly known as 30 St. Mary Axe, is on the market for 820 million euro.
Although London’s real estate market frequently catches the eyes of foreign investors, the prospect of owning 30 St. Mary Axe is attracting names not usually interested in London real estate to make offers, aiming to add this prestigious commercial monument to their collection.
The tower goes onto the market amid persistent financial problems experienced by its current owners, the German real estate group IVG and UK investment firm Evans Randall, which since April of last year have been under surveillance for not having paid interest on the 395 million pounds from German banks used to acquire the Gherkin from Swiss Re for 600 million.
Thus, negotiations are now underway to determine the destiny of one of the most well-known structures of London’s principle financial district. Designed by architect Norman Foster, the cigar shaped skyscraper has been put on the market at 650 million pounds, however given the interests surrounding it, that figure will likely rise.
The Gherkin, forty floors and fifty thousand square meters in the heart of London’s financial center will go to the group with the highest offer and certain guarantees regarding solvency, as remarked by Savills and Deloitte, two agencies managing the sale of the building.
It is presumed that at least a hundred contenders, including sovereign wealth funds, companies and individuals from Asia, the United States, Europe and the Middle East are on the list of potential buyers, according to Stephen Down Savills. Among these it seems is Qatar Holding, the emirates’ sovereign wealth fund that purchased the Shard building, designed by Renzo Piano.
Savills estimates that the Gherkin, rented half by the insurance agency Swiss Re and half to various tenants, could augment its rent profit margin by 20%, from its current 28.5 million pounds per year. In fact, the recovery of the British economy has especially favored London’s commercial real estate market, with a significant increase in offices. Indeed, 45% of nine hundred thousand square feet of offices still under construction have already been leased.
Category: Real Estate Market
Tag: United Kingdom, London, Gherkin, skyscraper