* Says will not look at new developments until 2010/11
* Only three projects underway as seeks to cut costs
* Lettings total 37,900 sq m for the 9 months to Sept 30
* Shares down 3.93 percent by 0854 GMT
(Adds CEO quotes, shares) By Martina Fuchs
LONDON, Nov 19 (Reuters) - British property firm Derwent London Plc said it would not start new development projects until 2010/11 due to weak central London occupier demand and the difficult investment climate in the UK property market.
"We cancelled one or two small projects. We won't be looking at anything new until 2010/2011... At the moment we rather keep collecting income and that's what we have been doing successfully," Chief Executive John Burns told Reuters.
Central London-focused Derwent said on Wednesday it would finish three projects under way costing about 100 million pounds ($150.5 million) -- in Islington, Fitzrovia and Noho -- and said it would realign its capital expenditure programme to maintain income and minimise vacancies.
Shares in the company were down 3.93 percent at 660 pence by 0922 GMT.
Rival property firm Hammerson last week pledged to stall development starts until end-2009 and cut costs as tenant demand drops amid Europe's weakening economy.
"In the current business environment, central London occupier demand has inevitably weakened, causing rent free incentives to increase and rental levels to decline," Burns said in a statement.
Derwent on Wednesday said its lettings for the nine months to end-September totalled 408,000 square feet (37,900 square metres), generating an income of 14.7 million pounds per annum.
The company, which specialises in office redevelopment and investment mainly in London's West End district, also reported its current vacancy rate was 3.3 percent, down from 4.5 percent at December 2007.
"We have 3 percent available letting space for next year, and during the course of the year another 15,000 square feet which is very small in comparison with the whole portfolio," Burns said.
Full-year pre-tax profit for the year to end-December is expected to be 34.03 million pounds, according to the average forecast of 12 analysts on Reuters Estimates.
The company ranks 6 in the UK real estate sector with a market capitalisation of about 692 million pounds, compared to market leader and commercial property investment trust Land Securities Group Plc with a market capitalisation of about 4.34 billion. (Editing by Victoria Bryan)