City of London office prices are poised to "soar", according to property group, British Land.

"We believe it is probable there will be a significant up-cycle in City property values in the next five years," said chief executive Stephen Hester who took over in November.

His comments came as British Land reported underlying pre-tax profits up by 17% to £174.8m. The companys share price ended the day up 17p at 882p.

About a third of British Lands portfolio is tied up in City offices with 20% in shopping centres such as Meadowhall in Sheffield and 13% in supermarkets.