Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Currency losses push the Gherkin into receivership

1 Comment
Currency losses push the Gherkin into receivership

The City’s iconic Gherkin tower has been put into receivership following five years of defaults.

Deloitte was brought in by debtholders after ‘adverse interest rate and currency movements have caused senior liabilities secured by the property to increase materially’, the company said.

IVG Immobilien, which runs the fund that owns part of the Gherkin, went into bankruptcy last year. It partnered with private equity group Evans Randall to buy the building for £600 million in 2007. However, part of the loan to pay this was in Swiss francs, the value of which has since risen by over 60% against sterling. This resulted in covenants being breached as the loan to value increased.

Neville Kahn, joint receiver and restructuring partner at Deloitte, said: ‘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.

‘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 buildings tenants include Standard Life, but it is not known what percentage of the building is currently let.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter