30 St Mary Axe, also known as The Gherkin, entered receivership today. Phil Bowers and Neville Kahn of Deloitte have been named as Joint Fixed Charge Receivers of the tower in an official statement from Deloitte. The 180m-high tower was recently named Londoner’s favourite tower in a poll commissioned by the NLA.
‘The asset’s complex, multicurrency capital structure’ is responsible for the continuing defaults, it was announced today, with an adverse interest rate and currency movements causing the total senior liabilities secured by the property to increase materially since closing.
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.”
The building, designed by Foster + Partners with Arup, is owned by IVG Immobilien and Evans Randall. IVG Immobilien filed for insolvency in 2013 and has now sold their Private Funds Management business to Deutsche Fonds Holding AG.