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Deloitte appointed to rescue Gherkin from a pickle 24 April 2014

Phil Bowers and Neville Kahn of business advisory firm Deloitte have today (24 April) been appointed Joint Fixed Charge Receivers of 30 St Mary Axe, London.

The iconic building – known as The Gherkin – has been leased consistently since the initial default in 2009 and remains in what the receivers describe as “trophy condition”.

Deloitte says the continuing defaults are due to the asset’s complex multicurrency capital structure. Adverse interest rate and currency movements have caused the total senior liabilities secured by the property to increase materially since closing.

“The senior lenders were reluctant to appoint a receiver,” said Neville Kahn, joint receiver and restructuring services partner at Deloitte.

“However, due to the ongoing defaults, felt they had no choice. These [defaults] have not been addressed for over five years and concerns that the borrowers’ lack of equity in the transaction had caused their incentives to become misaligned with that of the lenders.”

“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.”

IVG Immobilien, which controlled the lead investor and asset manager, went into bankruptcy in 2013.

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