The recent property news in London has been dominated by developments that have led to the iconic Gherkin skyscraper being placed into receivership. The Gherkin has been standing for more than 10 years, and has singlehandedly helped to transform London’s skyline in an instantly memorable way, yet this 41 storey colossus is now set to be put on sale in the not too distant future.
The sale of the Gherkin has not been instigated by problems with the property market, or indeed the use or condition of the building itself, but rather by issues revolving around currency. Fluctuating exchange rates are largely to blame, and they have caused the original size of the loan to swell out of all proportion, leading to several failed debt payments from the owners.
However, according to an article in The Guardian, the prospect of finding a buyer for the Gherkin is not expected to be overly problematic. Offers in excess of £500 million are predicted to be made by Middle Eastern funds in particular, and London’s currently robust commercial property sector is leaving many experts confident that the Gherkin will soon be under stable ownership once again.
Commercial property is inextricably linked to the economic fortunes of a nation, and, with the economy of central London currently posting strong figures, the sale of the Gherkin is very optimistic. In addition, the area around the Gherkin has always performed well for commercial investment as a result of its proximity to the Lloyd’s of London insurance market. Many new London skyscrapers are in the development stages, so hopes are high that the Gherkin too will soon leave these troubled times behind.
Even though it is always sad to see a well beloved building like the Gherkin entering a period of uncertainty, it bodes well that this structure is situated in London. As has been said, the commercial property outlook in London is second to none, and buildings which are as memorable as the Gherkin are likely to be swiftly snapped up.
However, this doesn’t mean that less famed commercial property in London is likely to languish, as buyers are flooding to access property in the capital on a daily basis. The issue with the Gherkin certainly highlights the delicate balancing act that must be engaged upon when dealing with property though, and here at Prideview Properties our professional consultants can guide you through all details relating to the acquisition, management and sale of commercial property in London.
We’ve been in operation for more than 25 years, and we have a proven wealth of commercial property expertise. To get in touch with our team, please don’t hesitate to contact us now.