Derwent has confirmed it could slow down development of a proposed £113 million office building designed by Fletcher Priest
The developer said it was considering whether ‘to continue at the current pace, slow down or reduce development expenditure’ on the 22,300m² Brunel Building project in Paddington over the next few months.
Demolition work has already completed on the scheme at 55-65 North Wharf Road, with groundworks and the basement box expect to finish in 2017.
Derwent said it was monitoring demand in the commercial market post-Brexit and a final decision on whether it slows down the development altogether did not have to be made until later this year.
Other major Derwent projects on site include its £225 million 80 Charlotte Street scheme designed by Make. Both projects had been targeted to be delivered in 2019.
Make charlotte street scheme for derwent
The possible delay to the scheme came as the developer announced its half-year results for the six months to 30 June 2016.
The group said the EU referendum had caused ‘increased market uncertainty’ and led to ‘a hiatus in many property transactions’.
However, it said it was too early to gauge what the impact of the vote to leave would have on the commercial market. ‘It is encouraging that, in subsequent weeks, activity has started to return to the markets, as evidenced by our lettings,’ it added.
Derwent chairman Robbie Rayne said: ’It is early days since the EU referendum but London remains a major global city with significant attractions and potential for the future.
’Derwent London has a flexible and dynamic business model and a strong balance sheet with low leverage, which enables us to respond to changing economic conditions.’
The developer said it had four major developments completing in 2016/17, which totalled 62,500m² and were 58 per cent pre-let, with capital expenditure to complete of £84 million.