Wednesday 11 December 2019

London's Gherkin tower enters receivership

The Gherkin skyscraper in London
The Gherkin skyscraper in London

Brenda Goh

London's landmark Gherkin office tower has been placed into receivership by its creditors, Deloitte, the accountancy firm said today, paving the way for a sale of the skyscraper.

The Gherkin is co-owned by Germany's IVG Immobilien which has grappled with debt issues in recent years.

Last year, it sought protection from its creditors after failing to reach an agreement over the restructuring of its debt. It has since agreed a debt-for-equity swap with its creditors.

"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," joint receiver and Deloitte partner Neville Kahn said.

The 30 St Mary Axe building, an icon of London's City financial district with its curved, Gherkin-like glass shape, is the headquarters of reinsurer Swiss Re.

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