Former Saatchi building revamp to start this year, but developer considers Savile Row scheme switch from resi to offices
Derwent London will embark on a 拢329m construction push over the next two years, after committing to major schemes including the 拢150m revamp of west London鈥檚 Saatchi building and a 240,000sq ft office scheme in Paddington.
In strong full-year results for 2014 published this morning, Derwent said it will begin construction on the 380,000 sq ft Make-designed part-refurb, part-new build redevelopment of Saatchi & Saatchi鈥檚 old headquarters in Fitzrovia this year.
Derwent has also committed to building its Fletcher Priest-designed 55-65 North Wharf Road office building in Paddington in 2016.
In total the firm said it will now spend 拢329m on development projects over the next two years.
Elsewhere, the firm said it is reconsidering its plans to convert the office building where it currently has its headquarters, 25 Savile Row, into 29 luxury apartments.
Derwent won planning for the conversion scheme (pictured) in December, but said it was rethinking the scheme due to 鈥渞ising office rents and the relatively higher costs in developing luxury apartments鈥�.
In its results, the firm posted a 8% rise in pre-tax proift to 拢62.3m, up from 拢57.8m in 2013.
The rise in profit was put down to a 5.8% increase in rental income to 拢128.7m in 2014, up from 拢121.7m in 2013.
New lettings secured totalled 拢9.2m, and the company reported that it had secured 拢5.9m from lettings in 2015 so far, with 拢2.1m under offer. The company completed Turnmill鈥檚 project in Clerkenwell, which provided 58,200ft虏 of offices space and has been let to Publicis.
The company also started the 105,000ft虏 development at The Copyright 好色先生TV W1 and has applied for planning permission to develop a 110,000ft虏 hotel in south London as well as projects at 25-9 Berners Street and Savile Row.
Commenting on the results, Robert Rayne, chairman, said:鈥淚 am pleased to report another very strong year for Derwent London in 2014. Our long-term strategy of investing in innovative design-led projects in London鈥檚 emerging villages appeals to occupiers and investors, as the definition of London鈥檚 core office locations continues to evolve.鈥�
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