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Gherkin goes into receivership ahead of sale. Battling with debt.

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.

Still its prime London commercial property so the only way must be up!

Bit of a pickle!

Edited by aSecureTenant

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Despite me being a mega bear, I am still amazed that this can't be refinanced. Presumably commercial rents are in the doldrums. Unless there is some specific reason for this, then it must raise a significant question over London prices. What is going to happen when all the other mega projects currently under construction come on stream?

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:D

Perhaps they need a bit of HP sauce.

(did you see what I did there?)

on so many levels

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Despite me being a mega bear, I am still amazed that this can't be refinanced. Presumably commercial rents are in the doldrums. Unless there is some specific reason for this, then it must raise a significant question over London prices. What is going to happen when all the other mega projects currently under construction come on stream?

No quick answer. But it was bought at the top of the market (2007 for 630m) and remains London's most most expensive office building.

http://en.wikipedia.org/wiki/30_St_Mary_Axe

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http://www.theguardian.com/business/2014/apr/24/london-gherkin-receivership-deloitte-sky-news

However, it has been defaulting on its debts since 2009 due to "adverse interest rate and currency movements," Deloitte said. It is funded by a loan that is denominated in Swiss francs and sterling, and the building is valued in sterling. A currency liability has arisen because the Swiss franc has risen strongly against the pound.

You would have thought high finance would have hedged against that....

What's the occupance rate like?

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No quick answer. But it was bought at the top of the market (2007 for 630m) and remains London's most most expensive office building.

http://en.wikipedia.org/wiki/30_St_Mary_Axe

There's a paradox here, it's gone into administration because prestige office prices are rising.

The gherkin breached the loan terms a few years ago, but the creditors kept it limping along until the commercial office market started to recover, which is now happening and in trumps. So the timing of this is actually evidence of the lenders confidence that they can now get their money back via an open sale.

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It always seemed a dim and underwhelming place whenever Jeff Randall did his Sky business reports from there pretending that London was the financial capital of the world.

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The Shard will be next.

I also look forward to when Man United needs to refinance.

This. Massively :)

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The Shard will be next.

I also look forward to when Man United needs to refinance.

Yep The gherkin was ~90%+ occupied.

The shard is almost empty.

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P.S. I sometimes comment on Talk sport and the morning chaps comments on property...when the did the newspaper front pages today they said...."gherkin in receivership"....if you asked me the presenter responded with a startled "oh really"....

You can loose on London real estate it would seem. It's probably not different after all.

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