Gherkin goes in to receivership

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THE GHERKIN in the City of London has gone in to receivership, it has been announced.

The move was forced by creditors of the iconic building, which has become one of the most popular additions to London’s skyline over the past decade.

The 180-metre tall building at 30 St Mary was originally owned by Swiss Re – still a principal occupier in the building – and was sold to IVG and Evans Randall in 2007.

Phil Bowers and Neville Kahn of Deloitte have been appointed as official receivers for the Lord Rogers-designed tower. A statement from Deloitte says that the building remains in “trophy condition” and that “the continuing defaults are due to the asset’s complex, multicurrency capital structure.”

Neville Kahn, Joint Receiver and Restructuring Services Partner at Deloitte commented: “The Senior Lenders were reluctant to appoint a Receiver but felt they had no choice due to the ongoing defaults, which have remained uncured for over five years, and concerns that the Borrowers’ lack of equity in the transaction had caused their incentives to become misaligned with the Lenders’.”

Mr Kahn continued: “The Gherkin is a truly exceptional building, a landmark recognised around the globe. Our priority is to preserve the value of this asset. We are in the process of communicating with all tenants and working with the property manager to ensure the continuation of all property management services with no interruption to tenants.”

Serviced offices continue to remain available inside the Gherkin.

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