Swiss Re said today it had sold its City of London office building known as the "Gherkin" for £600 million sterling to an affiliate of real-estate corporation IVG Immobilien AG.
The Gherkin in London. Photo: PA
The reinsurer would make a book gain of around £250 million on the deal, a spokeswoman said.
Half of the gain would be booked in its 2007 income statement, the spokeswoman said. The other half would be booked over a period of 20 years.
IVG says Swiss Re would remain a tenant at least until 2031, occupying 50 per cent of the property's rentable space. The transaction was expected to close this month.
German real estate company IVG said it would buy the landmark London office together with Britain's Evans Randall in a joint venture in which it held 50 per cent.
IVG said the purchase price was £630 million. The £30 million difference between that price and the figure mentioned by Swiss Re was due to fees, Swiss Re said.