IVG Immobilien’s ongoing restructuring plan has taken another twist with the appointment of Deloitte as receiver on its ‘Gherkin’ office tower in London.
With the property’s loan-to-value ratio having risen above 90% and well above its 67% LTV covenant, it was put into administration last week.
IVG’s tranche of the loan is in Swiss francs, which has appreciated against sterling by more than 60%.
IVG has a 50% stake in the property, held in the Euroselect 14 fund, with Evans Randall as equal partner.
The joint venture paid £630m (€765m) for the 41-storey building in 2007, using £400m of debt.
In a statement, Evans Randall said it had equity “ready to invest” but was unable to do so due to uncertainties surrounding IVG’s future.
Last month, IVG Immobilien’s creditors and shareholders approved an insolvency plan for the company that included a debt-for-equity swap – taking IVG off the stock market.
In total, the company has €3.2bn in debt to restructure.
An insolvency ratio of at least 60% must be paid to non-subordinated unsecured creditors.
Pending court approval, implementation of the capital measures could then begin, with insolvency proceedings lifted by year-end.