Commercial property developers are preparing for economic recovery by seeking investors to purchase office space in London.
Development Securities is asking around £1 billion from supporters in order to profit from cheap property in the capital when the market finally bottoms out – placing themselves in an excellent position for future returns.
The company is already holding talks with funds around the world, including Europe, America and the Middle East.
Although recovery is not expected until 2010, the firm intends to buy sites for construction as soon as London’s commercial property market looks close to its low point, which is expected to occur relatively soon, to anticipate increasing demand over the following years.
The company recently reported a pre-tax loss of £65.6 million, but insists that it is in a strong position thanks to sufficient adequate liquidity and its clear road map for future development.Share: