Evans Randall has secured a “yes” vote to buy out its Gherkin co-owners but now faces a race to agree terms and refinance before receivers secure a sale of the City tower.
The private equity firm has won the support of more than 40% of IVG EuroSelect 14’s circa 9,000 investors to negotiate the proposed purchase of their 50% equity stake.
But this week, Deloitte and Savills, which are selling the 516,000 sq ft tower on behalf of lenders, took registrations of interest from more than 200 parties and are keen to secure a sale before the end of next month.
Evans Randall has been in negotiations over the terms of a buyout with representatives of investors in the fund, which is now owned by Deutsche Fonds Holding, following the vote on 11 August.
The private equity group had offered IVG investors £15m. This would in effect mean they lose about 80% of their investment, but Evans Randall said that it offered certainty over a receivership sale, which could see investors recoup less than 10%.
However, according to a Deutsche Fonds Holding spokesman, the vote in favour “is just one step, not the end of the situation” and agreeing a price for the buyout is one of the key issues under discussion.
Evans Randall believes that as sole owner it would be better placed to inject equity and secure a refinancing of the building’s £509m debt pile.
The private equity firm will still need to secure agreement for its restructuring plans from the consortium of German lenders to bring the receivership process, initiated in April to an end.
A spokesman for Evans Randall said: “We can confirm that the investors of IVG EuroSelect 14 GmbH & Co KG voted in favour of Evans Randall acquiring its stake in the Gherkin, and we are currently documenting the acquisition.”
