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 its loan-to-value ratio having risen above 90% and well above its 67% LTV covenant, the property was put into administration yesterday. 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. The plan includes 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. If granted court approval, implementation of the capital measures could then begin, with insolvency proceedings lifted by year-end.