Savills and Deloitte Real Estate have been jointly instructed to sell London’s iconic The Gherkin, with marketing of the iconic 505,000 sq ft (46,914 sqm) office building about to start with interest expected from all corners of the globe.
Designed by Lord Foster, the 40-storey skyscraper opened in 2004 and is currently multi-let to approximately 20 tenants including Swiss Re, Kirkland & Ellis International LLP and ION Trading.
Stephen Down, Head of Central London Investment at Savills, said:: “This is a prestigious appointment on what is a globally recognised landmark building, which sits in the heart of London’s business core.
“The Central London commercial property market has benefitted from improving market conditions over the course of the last few years. Not only have we witnessed a sustained appetite from international investors for assets in London but we have seen a substantial improvement in business growth and take up of office supply as the Capital’s economy continues to improve.”
Jamie Olley, Head of City Investment at Deloitte Real Estate, added: “The Gherkin is one of London’s famous landmark buildings and the most iconic office tower in the City’s skyline. For investors, this prime office property provides an attractive combination of stable and reversionary income with opportunities to add value via asset management.
“The property will appeal to a wide range of domestic and international investors and we are confident of maximising returns to the receivers and creditors.”
According to Savills research, over the last five and a half years, Central London has seen £71.1 billion invested into the office and retail markets, with overseas investors accounting for £47.7 billion, equating to 67 percent of the overall volumes.
The research noted that during this time period, investors from Asia Pacific represented 19 percent of total office and retail transactions, with European buyers accounting for 18 percent. United States and Middle Eastern investors represented 13 percent and 10 percent respectively.
The firm also highlights that U.K. institutions are another current key investor group in the Central London market having accounted for 23 percent of office transactional activity between January and May 2014, compared to just 10 percent during the same period in 2013.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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