London’s Gherkin gobbled up by German private clients
The Gherkin (30 St Mary Axe), a landmark building in the City of London, has been sold to German high-net-worth and private clients through IVG Immobilien’s closed-end fund, EuroSelect 14.
The fund was fully placed by the end of October, raising €224 million after a two-month marketing period. The minimum investment was €10,000.
EuroSelect 14 "The Gherkin" is one of a series of single- and multi-property funds IVG has created for the German private client sector. Klaus Schmidt, head of IVG Private Funds in Bonn, says the EuroSelect fund family appeals to investors looking to invest for retirement. "Clients like to know what they’re investing in," he says. "With the EuroSelect fund we are looking for class A properties in prime locations, which investors know."
The lifespan of the funds is usually about 10 years, says Schmidt. However, investors can sell shares after the funds’ closing on the Hamburg Stock Exchange.
Other EuroSelect funds have featured other important London properties such as Riverside House, the headquarters of the Financial Times, and BHP Billiton’s European headquarters at One Neathouse Place.
IVG Immobilien bought the Gherkin for £600 million ($1.25 million) from SwissRe in May this year.