Deloitte Puts $1B Price Tag on The Gherkin Building
- Aug 11, 2014
An overseas buyer is reportedly set to become the new owner of London’s iconic Gherkin Building, which has been put up for sale. The reported asking price for the office high-rise stands at 640 million GBP, or approximately $1 billion. The building has had a problematic year, with the property falling into receivership earlier in 2014. Deloitte and Savills will handle the sale of The Gherkin, formerly known as the Swiss Re building, with Deloitte having been named the receiver back in April.
The 40-story building at 30 St. Mary Axe was the result of plans for the 92-story Millennium Tower falling apart at the turn of the last century, and the replacement of that project with the Lord Foster-designed tower. Construction on the property began in 2001 and completion was recorded in 2003, with an official opening taking place on April 28, 2004. Skanska was responsible for development of the 516,100-square-foot landmark. The building is located on the site of the Baltic Exchange, a facility that seriously deteriorated following a 1992 attack by the IRA. The immediate vicinity of the asset includes the historic 1532-built Sir Andrew Undershaft church, a survivor of the catastrophic effects of both the Great Fire of London and the bombing of the city carried out during World War II.
The property’s current tenant roster includes around 20 names, one of which is Zurich-based insurance company Swiss Re, the original owner of the striking facility. According to The Guardian, potential buyers involved in early talks may include a sovereign wealth fund from the Middle East or Asia, given the London office market’s recent attraction for owners from that area. Included in most recent materials and film productions featuring the city of London, the building’s architecture has become representative for the new design of major developments in the English capital.
Former owners IVG Immobilien and a Mayfair investment bank ran into difficulties with currency, which led to Deloitte’s taking control of the tower this spring.