West End and City office space landlord Derwent London has reported a sharp pick-up in business this week.
The firm, who owns office property in the City and West End areas of London, announced a 9.8% rise in the value of its property portfolio over the last half of 2009. The figures partly offset the 12.3% drop in the first half of 2009, which left the portfolio down 3.3% for the whole of 2009. Derwent had previously reported losses of £34.9 million for 2009, which was an improvement on the £606.5 million in 2008. Property values in 2008 had also dropped by 22.1%.
However Derwent London’s chief executive, John Burns, believes the pick -up in business again is due to the West End being a “sweet spot” in the office space market in comparison with other areas of the UK which are still struggling after the recession. He commented “London is doing well but it is almost two countries. We know there is a lot of trouble out of town,
“The first half was extremely bad for everybody but the second half has seen a strong clawback. It was a year of two halves.”
They plan to take even further advantage of the upturn with the refurbishment and new development of five new projects in the capital over the next two years at least.
Other property firms and landlords have reported similar activity in the area, proving that these areas are good places to focus business on in the office space industry.