Given its long-term commitment to the building, Swiss Re CEO Jacques Airgrain says the company selected IVG Immobilien AG due in large part to its track record in managing properties. A number of potential investors showed significant interest in the building, he says. Swiss Re is rated "AA-" by Standard & Poor's, "Aa2" by Moody's and "A+" by A.M. Best.
IVG Immobilien AG is acquiring the Gherkin in a 50-50 joint venture with Evans Randall, a London-based private investment banking firm. Evans Randall stated in its on press release that it is paying 630 million pounds (US $1.24 billion) for the asset, which it says reflects a yield of 4.5%.
Evans Randall and IVG Immobilien will each offer up half of their interest to third parties. Evans Randall says it will offer half its stake to private and institutional investors via a "special purpose vehicle." IVG says it will place half of its stake with private investors via a closed-end real estate fund in the IVG EuroSelect series.
Evans Randall chief executive Michael Evans say the acquisition reflects the company's strategy of acquiring trophy buildings let to strong tenants in Europe's main financial centers. The company's portfolio also includes the Financial Services Authority's headquarters at Canary Wharf; ABN Amro's UK headquarters at 250 Bishopsgate; the HBOS offices at 33 Old Broad Street, London EC2; and ING's Headquarters in the Hague, Holland.
DTZ and Eurohypo advised Swiss Re in the sale. CB Richard Ellis represented Evans Randall. CBRE and Knight Frank advised IVG Immobilien.
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