Central London-focused property investment and development company Derwent London has reported a significant increase in business in London’s “Tech Belt” as it pre-tax profits more than doubled in the first half of the year (release).
Profits before tax rose to £219.8m from £102.8m in the same period the year before, while basic earnings per share rose to 210.22p from 99.08p.
Chairman Robert Rayne said London’s economy “continues to outperform that of the rest of the UK”.
The capital is an attractive place for some of the world's most innovative businesses and has broad appeal to real estate investors globally. Against this background, Derwent London's many business and community initiatives provide a firm foundation for the continued strong performance of the Group.
The group noted an increase in investment, particularly from overseas, as investors look to retain “income-producing assets”, which in turn pushed property values up further.
In particular, the Tech Belt was said to be performing very well, leading to a large increase in business in this area.
Chief executive John Burns said:
Derwent London has had an excellent first half. We secured a record level of lettings and rising rents at our brand of well-designed office space. We are seeing particular interest from the UK's expanding creative industries and TMT companies, most notably in London's 'Tech Belt'. The success of our recent convertible bond issue reflects the market's confidence in the Group's strategy with our extensive project pipeline providing many opportunities for future value creation.
Derwent London increased its interim dividend to 10.75p from 9.95p.