Derwent London finds 'sweet spot' in West End to escape property downturn

West End landlord Derwent London today said business had picked up sharply in recent months as it launched a refurbishment and development programme.

The firm, which owns offices in the West End and the City, said the value of its properties rose 9.8% in the second half of last year.

That partly offset a 12.3% fall in the first half leaving the value of the portfolio down 3.3% over the year at £1.92 billion. Values fell 22.1% in 2008 as Derwent was battered by the recession.

The firm posted losses of £34.9 million for 2009 compared with a £606.5 million deficit in 2008. Net asset value per share rose 18% in the second half to 1168p but was still down 4.7% over the full year.

Chief executive John Burns said the West End was a "sweet spot" in the British office market, with much of the country still struggling.

"London is doing well but it is almost two countries. We know there is a lot of trouble out of town," he said.

"The first half was extremely bad for everybody but the second half has seen a strong clawback. It was a year of two halves."

Derwent began the refurbishment and new development of five major projects in London for this year and 2011 to take advantage of the upturn.