Derwent London is moving forward with two significant office developments in central London as confidence returns to the capital’s commercial property market following a strong rise in leasing activity and rental growth.
The developer has already begun demolition works at Holden House on Oxford Street, where a major retained-façade redevelopment will deliver around 133,500 sq ft of new office-led space opposite the Dean Street Elizabeth line station.
Kier has been appointed under a pre-construction services agreement to oversee the main construction phase of the project, with completion targeted for the second half of 2028.
At the same time, Derwent has confirmed it will progress the redevelopment of 50 Baker Street in London’s West End. Demolition works on the scheme are expected to begin in the coming months, with contractor Multiplex understood to be lined up to deliver the £150m project.
Designed by architects AHMM, the Baker Street development will provide approximately 236,000 sq ft of new space within one of London’s strongest office markets.
The decision to move ahead with both schemes follows what Derwent described as a strong period of leasing activity across its portfolio. This includes the successful pre-letting of its recently completed Network building, where rental levels reportedly exceeded expectations.
Alongside its development programme, Derwent has also made significant progress with its asset disposal strategy. The company confirmed it has exchanged contracts on £278m worth of property sales as part of a wider three-year target to dispose of £1bn in assets.
Chief executive Paul Williams said the business had experienced strong momentum driven by leasing success and rental growth across key London locations.
He added that progress on disposals had enabled the company to proceed with the redevelopment of 50 Baker Street, where strong rental performance is expected to support future profitability and earnings.
Derwent also confirmed it is continuing to advance plans for another major scheme at Old Street Quarter EC1. A planning application is expected to be submitted towards the end of 2026 for a large mixed-use campus on the 2.5-acre former Moorfields Eye Hospital site close to Silicon Roundabout.
The proposed development is expected to become one of the company’s next major regeneration projects as demand continues to strengthen for high-quality office and mixed-use space in central London.
Building, Design & Construction Magazine | The Choice of Industry Professionals
