Derwent London, property development firm and office landlord, have announced plans to build two new office blocks in London for 2011 to fulfil shortage of space and increasing demand in the city.
The firm had identified a significant gap in the London market in its interim results and have confirmed that two office blocks, bringing over 300,000 sq ft of grade A office space, will be developed.
A mixed-use development on Hampstead Road, Euston, will measure approximately 265,000 sq ft and begin construction in Q2-Q3 2011. Derwent will shortly be sumbmitting a planning application for the property.
The firm also plan to re-develop the Old Turnmills nightclub based in Clerkenwell, which had previously been refused planning permission. The new-build scheme will bring a further 65,000 sq ft of office space to the capital. Another planning application will be submitted in 2011.
Derwent have also reported sustained growth in their property portfolio to £2.15 billion, quelling fears that there would be a slump in real estate.
Chief executive of Derwent, John Burns, said, “The defensive qualities of the central London office market remain sound,” he said in a statement. The group remains in excellent financial health and we are well placed to make the most of future opportunities.”