Whilst ” The Gherkin” may be out of the reach of most property investors looking at buying commercial property. It is interesting to note that this iconic London building is immediately attracting interest according to the selling agents and despite a price tag of around £650 million .
30 St Mary Axe to give the property its correct name is affectionately known as “The Gherkin” was officially opened in May 2004 and has established itself in London’s recognisable skyline. Reaching a height of 180m, 30 St Mary Axe Plaza measures a total of 2000 sqm and theoretically could accommodate 4000 occupiers . This London commercial property designed by Lord Foster is let to around 20 tenants and is reportedly up for sale after the plaza was placed in receivership in April by its creditors after one of its owners was placed in insolvency.
This sale of this iconic London commercial property will attract interest from across the globe with several international buyers previously interested in the building when it was sold in 2006 . It is also expected to attract the attention of UK institutions, a key investor in this sector of the property market
Property Week just a few days ago revealed Investment in the UK commercial property sector over the past 12 months has reached £51.4bn . This maybe can attributed to industry insiders predicting double digit returns for some UK commercial property, making this sector of the UK property market seem attractive for those buying an investment property. These levels and returns are reminiscent to the times prior to the recent UK recession. with present day reports of the UK economic recovery, office space, it is predicted will see higher levels of take up and occupancy as experienced in the last 12 months,
The appointed agents are Savills and Deloitte Real Estate who have been jointly instructed to sell the property. Stephen Down, Head of Central London Investment at Savills, comments: “This is a prestigious appointment on what is a globally recognised landmark building, which sits in the heart of London’s business core. The Central London commercial property market has benefited from improving market conditions over the course of the last few years. Not only have we witnessed a sustained appetite from international investors for assets in London but we have seen a substantial improvement in business growth and take up of office supply as the Capital’s economy continues to improve.”
Those looking at buying commercial property as an investment can also look at more affordable opportunities with commercial property opportunities available across the UK including the some fully managed individual units at under £100,000. Investment Property Consults will be happy to assist investors looking to diversify on a small scale into UK commercial property and also those looking to make more considerable investment in this arena