THE massive IRA bomb at London Docklands in February did not dent the commitment" of firms to the area, according to a new report.

More than 1.37 million square feet of office space was let there in 1995-96, the highest level ever, according to the annual report of the London Docklands Development Corporation (LDDC).

The blast at South Quay on February 9th left two people dead and caused tens of millions of pounds damage.

Around 40 companies were based in buildings that were damaged and had to find temporary accommodation, though most stayed within London Docklands, said a spokeswoman.

Two weeks after the blast, Reader's Digest announced it had bought a 140,000 sq ft building at Canary Wharf for its UK headquarters.

Michael Pickard, chairman of the LDDC, states in the report: "Sadly the IRA chose South Quay as the location for the bomb which ended their ceasefire in February.

"The blast did not dent the commitment of firms in Docklands including many of those which had to move out of their offices.

"The preference to relocate temporarily within London Docklands was such that vacancy rates in the immediate area of the Isle of Dogs fell by 5 per cent as companies sought to move as close as possible to their former locations."

More than 1.37 million sq ft of office space was let in London Docklands in the year, 1,100 homes were built and sold, and 3,600 new jobs were attracted, stated the report.

During 1995-96 the area "continued to take a lead in the revival of activity across the capital, with Docklands continuing to welcome quality names", said Mr Pickard.

A spokeswoman for the LDDC said the signs were that the blast "will not have a long-term impact".