Commercial real estate developer says occupier demand is ‘good’ despite political and economic turbulence
Derwent London has reported an increase in its estimated rental values and says demand remains strong despite the recent upheaval in the market.
The developer, in a third quarter trading update today, said its lettings totalled £9m in the first nine months of the calendar year, with its estimated rental value 12.7% higher than the same period last year.
Paul Williams, chief executive of Derwent London, said: “Despite recent political and economic uncertainty, occupier demand in London remains good for the right product and the flight to quality continues.”
Derwent started work on Network W1, a 137,000 sq ft office-led scheme in Fitzrovia designed by Piercy & Company, this year. Demolition works have also completed at 25 Baker Street W1, a 298,000 sq ft development that includes office space and 45,000 sq ft of residential.
Main contractor Laing O’Rourke is “well underway with sub and super-structure works,” said Derwent.
>> See also: BCO recommends office density reduction for post-pandemic world
Williams said: “We have a strong balance sheet and with disposal proceeds in the year to date of £205m, we are reinvesting in two distinctive West End developments where supply remains constrained.”
Derwent, a real estatement investment trust, currently owns 75 buildings in a commercial real estate portfolio predominantly in central London. Its model involves regeneration of buildings through development or refurbishment to create value.
No comments yet