Brazil's Safra Dynasty Acquires London's Renowned Gherkin

Tom Burroughes

11 November 2014

Brazilian billionaire Joseph Safra, whose eponymous banking business now owns a large Swiss bank – – is also now the owner of one of London’s most eye-catching buildings, the Gherkin, media reports said.

The building has been sold for more than £700 million ($1.1 billion) from its receivers; Safra did not disclose the size of the deal in a statement but reports, quoting sources, said the cost was £726 million.

UK property group Evans Randall and a consortium of German retail investors in IVG Private Funds had bought the building in 2006 from Swiss Re, the European reinsurance group. The building went into administration in 2009.

Safra Group was quoted as saying the deal was “consistent with our real estate strategy of investing in properties that are truly special – at the best locations within great cities. While only 10 years old, this building is already a London icon that is distinguished from others in the market, with excellent value growth potential. We intend to make the building even better and more desirable through active ownership that will lead to a range of enhancements that will benefit tenants”.

The sale is also an example of how emerging market investors, such as from Asia and the Middle East, have been among the most avid buyers for London properties in recent years, attracted by factors such as perceived economic and political stability and the city’s vibrant financial state.