LONDON (Reuters) - European property investor Heron International on Friday launched its new London West End office and retail project, The Peak, a sign of rising developer confidence in the UK's recovering commercial property market.

Heron, which is partnering AXA Real Estate Investment Managers and the Co-operative Insurance Society in the 98,000 square feet project, said the building's ground floor and basement have been pre-let to HBOS plc, part of Lloyds Banking Group (LLOY.L: Quote, Profile, Research), as a new financial services outlet for Halifax.

The development of commercial properties in the UK ground to a halt as the global financial crisis took hold, denting confidence and lifting the cost of borrowing. In the two years to August, UK commercial property values plunged 45 percent.

Earlier this month, shopping mall owner Hammerson (HMSO.L: Quote, Profile, Research) and London property developer and investor Great Portland Estates (GPOR.L: Quote, Profile, Research) said they were continuing to advance their development pipelines, Hammerson planning a return to the construction site in 2010.

(Reporting by Daryl Loo; Editing by Andrew Macdonald)

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