Major London Landmark for Sale as Deloitte Puts $1 Billion Price Tag on The Gherkin Building

By Alex Girda, Associate Editor

London—An overseas buyer is reportedly set to become the new owner of London’s iconic Gherkin building. 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 the former being named the receiver back in April.

The 40-story building at 30 St. Mary Axe was the result of plans for the 92-story Millenium Tower falling apart in the early ‘90s, and the replacement of that project with the Lord Foster-designed tower. The building, which was developed by Skanska, is located on the site of the Baltic Exchange, a facility that had been seriously deteriorated due to a 1992 attack by the IRA. The immediate vicinity of the asset includes the historic 1532-built Sir Andrew Undershaft church.

The property’s current tenant roster includes around 20 names, including Zurich-based insurance company Swiss Re, the original owner of the striking facility. According to The Guardian, potential buyers may include a sovereign wealth fund from the Middle East or Asia, given the London office market’s recent propensity towards owners from that area.

Former owners IVG Immobilien and a Mayfair investment bank ran into difficulties with currency, leading to control of the tower being awarded to Deloitte this spring.