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Derwent reveals £700m London office pipeline

Property developer Derwent has announced plans to invest around £700m in high-end London projects.

The company used its half-year results to confirm plans to raise capital expenditure from £206m to £662m for a programme of major developments through to 2022.

Derwent is currently building the £243m Brunel Building office scheme in Paddington as well as the 80 Charlotte Street £380m mixed-use development in Soho.

The developer’s next projects include the £285m Soho Place project on the site of the old Astoria music venue (pictured), which will feature a 40,000 sq ft theatre along with 209,000 sq ft of offices and 36,000 sq ft of retail.

It is also set to build a £125m mixed-use scheme in Old Street known as The Featherstone Building, located next to the company’s White Collar Factory development.

Planning consents have been secured for a further two significant projects: a 293,000 sq ft mixed-use scheme in joint venture with The Portman Estate in Baker Street, and a 1,000 sq ft flagship store site in Oxford Street.

The developer’s results showed net rental income was up 1.6 per cent for the £80.6m from £79.3m in 2017.

Derwent major developments pipeline

Project StatusSq ftCapex to completeDetails
Brunel Building, 2 Canalside Walk W2 On site 243,000 £44m Offices – 40% pre-let
80 Charlotte Street W1 On site 380,000 £156m 73% pre-let: 321,000 sq ft offices, 45,000 sq ft resi, 14,000 sq ft retail
Soho Place W1 Next up 285,000 £291m 209,000 sq ft offices, 36,000 sq ft retail, 40,000 sq ft theatre
The Featherstone Building EC1 Next up 125,000 £78m Offices, workspaces, retail
19-35 Baker Street W1 Planning granted 293,000 n/a 206,000 sq ft offices, 52,000 sq ft resi, 35,000 sq ft retail
Holden House W12 Planning granted 150,000 n/a Retail flagship or retail and office scheme
Total  1,476,000   

The firm said it was seeing strong demand, with 60 per cent of its onsite developments already pre-let.

Derwent chief executive John Burns said: “London’s robust occupier demand has endorsed our actions to push ahead with recent developments, and we are now in a strong position to proceed with our next two major projects.

“We remain confident that Derwent London will continue to deliver the buildings for today’s occupiers and grow our earnings over the medium term.”

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