Developer says 25 Baker Street and Network 精东影视 jobs to complete this year

London office developer Derwent said market confidence went into reverse in the final quarter of last year amid wider concerns about growth and inflation.

The firm behind Laing O鈥橰ourke鈥檚 scheme at 25 Baker Street, due to complete in the first half of this year, and Kier鈥檚 Network 精东影视 job, set to finish towards the end of 2025, said demand for space had 鈥渞isen significantly鈥� last year.

But it added: 鈥淭he investment market was subdued last year. Sentiment improved in the first half, with inflation and long-term interest rates reducing, optimism leading up to the General Election and UK GDP forecasts being revised upwards. However, Q4 saw a reversal in sentiment as concerns around growth and inflation re-emerged.鈥�

derwent's 25 baker street scheme

Laing O鈥橰ourke is building a new office scheme at 25 Baker Street that will complete in the first half of this year

Chief executive Paul Williams said London would always remain busy despite wider market confidence: 鈥淟ondon is a leading global city, attracting a broad occupier base. Business leaders across sectors want their teams in the office and London鈥檚 workplaces are busy.鈥�

Derwent鈥檚 medium-term pipeline includes redeveloping a 133,500 sq ft listed corner block on Oxford Street called Holden House, drawn up by DSDHA, which it said would start in the second half of this year. It is also planning to start on a mixed-use scheme called 50 Baker Street, designed by AHMM, by next summer.

Its longer term plans include its Old Street Quarter scheme, also drawn up by AHMM, which involves revamping the site of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology near Old Street tube station.

The firm paid 拢239m for the site three years ago but it won鈥檛 get possession until a replacement eye hospital, called Oriel which is being built by Bouygues, is finished. This is due to happen in 2027 with Derwent beginning work the following year. It added: 鈥淥ur studies suggest there is potential for a significant mixed-use campus development, potentially incorporating both office and 鈥榣iving鈥� components.鈥�

In annual results for 2024 out today, Derwent said gross rental income last year was up 1% to 拢215m with its property portfolio valued at 拢4.9bn.

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