Commercial Property News

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Wednesday, February 07, 2024

IVG acquires 30 St Mary Axe ( the "Gherkin" ), London for £630m

IVG Immobilien AG is acquiring the property 30 St Mary Axe, in the financial district of the City of London, from Swiss reinsurance company Swiss Re. The total acquisition price is £630m (?950m) including transaction costs. The acquisition will be executed in the form of a 50/50 joint venture with British investment bank Evans Randall.

The investment will be accessible to private and institutional investors in 2007 through two separate funds. IVG intends to place approximately 50 per cent of the real estate asset with private investors via a closed-end real estate fund in the IVG EuroSelect series. Evans Randall will place the other half with institutional investors. IVG and Evans Randall will act as co-investors with a respective 10 per cent share.

IVG's London subsidiary will handle the property's asset management. The property has been let long term to a strong tenant base. Swiss Re continues to be the main tenant with a 50 per cent share of the rentable space until at least 2031.

Commenting, Dr. Wolfhard Leichnitz, Chief Executive Officer of IVG Immobilien AG, said: "30 St Mary Axe is a true landmark with a secure long-term tenancy. The property is an attractive investment for our funds investors, not only visually but also from an investment perspective."

The world renowned skyscraper is approximately 590 feet tall and was designed for Swiss Re by the leading architects Foster + Partners. The office building often referred to as the "Gherkin", has marked London's skyline since 2004.