Derwent London is preparing to start work on 485,000 sq ft of development as the company continues to let its current projects at growing rents.
The fringe developer said it would complete 277,500 sq ft of development by early next year and planned to start almost double that in 2015.
This includes the 380,000 sq ft redevelopment of Saatchi & Saatchi’s current home at 80 Charlotte Street, W1 into offices and residential and a 105,000 sq ft office and retail redevelopment of 25-29 Berners Street, W1.
The commitment to push ahead with these schemes comes after Derwent let 70,000 sq ft in Q3, securing £4m pa in rent – 8.9% above its June 2014 estimates. This included a prelet to Freud Communications at 1-2 Stephen Street, W1.
Derwent has so far sold £69m of property in the second half of this year including 186 City Road, EC1, and 35 & 37 Kentish Town Road, NW1; Suncourt House, N1, and 136-142 Bramley Road, W10.
It has made no acquisitions during the period but it is currently appraising “a number of opportunities” and has cash and undrawn facilities of £385m and a low LTV of 25.5%.
Derwent chief executive John Burns said: “We remain confident about our portfolio’s prospects for both rental growth and firm property yields during the rest of this year and into 2015. Against this background, Derwent London is well positioned with its substantial and flexible development programme.”
