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
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter