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Interim Management Statement for nine months ending 30 September 2008.

Commenting on the period under review, John Burns, chief executive of Derwent London, said: “In the current business environment, central London occupier demand has inevitably weakened, causing rent free incentives to increase and rental levels to decline. However, as demonstrated by our letting activity, our middle market, well designed space remains attractive to cost conscious, yet discerning, occupiers. Whilst activity in the property investment market remains scarce, the recent substantial reduction in the base rate should be a positive step towards improving liquidity as the gap between interest rates and increasing property yields widens. Hopefully, this will start to re-establish the market. “We have a strong balance sheet which puts us in a good position to ride out the current challenging conditions. During these times, we will concentrate on maintaining income, minimising vacancies and managing our capital expenditure programme, to ensure that we benefit from the recovery when it arrives.”