Office company earmarks £260m for London projects - corporate real estate

Wednesday, March 17, 2010

Annual results reveal corporate real estate company earmarks funding for London projects

By Ashley Brunskill

A leading corporate real estate firm has earmarked £260 million for projects in the centre of London after demand increased for office space from businesses.

Derwent London, a firm that specialises in office refurbishment and redevelopment, is expecting an increase in rental valuations during this year.

The company announced a significant decrease in its yearly pre-tax profits of £34.9 million for 2009, which compares with more than £600 million for 2008.

Annual results also show expenditure for 2010, on Derwent London's projects, is expected to be around £63.5 million, with a further £200 million spent by the company in the following two years.

Chairman Robert Rayne sees grounds for optimism both for the company and the sector.

He said: "Economic indicators have yet to demonstrate a sustained recovery but rents within our central London villages have virtually stabilised and, for the first time since early 2008, an anticipation of rental growth is emerging."

Source: ask-re The Property People LLP