Britain’s sixth-largest Real Estate Investment Trust, Derwent, is renewing its efforts to cash in on the soaring value of London commercial property. The company’s net asset value rose 18 percent in the second half of 2009, buoyed by the changing fortunes of its property portfolio.
Derwent focuses on properties in the middle of the rental spectrum, generally concentrating on the £30 to £50 per square foot range. Having seen rents crash in 2007 and 2008, a degree of first stability and now growth has returned to the market. Derwent’s CEO, John Burns, has expressed his confidence that rents for London office space will rise ‘up to ten percent’ over the coming year.
To take advantage of this, the company is beginning a new tranche of refurbishment and development projects totalling around 270,000 square feet, with 75,000 square feet of mid-range office space being made available in 2010.
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