Derwent London, the Central London focused REIT, has seen an increase in occupier demand, with 1,900 m[sup]2[/sup] leased during the first quarter of 2008 and a further 3,400 m[sup]2[/sup] leased since the end of March. The leasing represent an annual rental income of £1.6 mln (EUR 2mln).
Derwent London, the Central London focused REIT, has seen an increase in occupier demand, with 1,900 m2 leased during the first quarter of 2008 and a further 3,400 m2 leased since the end of March. The leasing represent an annual rental income of £1.6 mln (EUR 2mln).
Derwent's development pipeline has continued to grow. Planning consents were granted for three sites totaling 62,600 m2 located in North Wharf Road, Paddington, the Angel Building, Clerkenwell and 40 Chancery Lane, Holborn respectively. A negotiated lease surrender in 1-3 Grosvenor Place, Belgravia will allow for the future redevelopment of the 7,800 m2 building along with the adjacent 4-5 Grosvenor Place property. While the company expects a short-term slowdown in demand for central London office space it expects better performance in the West End due to its low vacancy rate, broad range of tenants and limited construction pipeline. Limited access to finance will keep the number of transactions down through 2008.
John Burns, CEO of Derwent London, commented: 'Through the ownership of a portfolio with reversionary rents, an average unexpired lease length of just under nine years and a flexible development pipeline underpinned by income, we are well positioned for these uncertain economic conditions. Additionally, we continue to be in excellent financial health with a strong balance sheet and low gearing of 44.7%. With over £300 million of unutilised bank facilities, we are well placed to make acquisitions if the right opportunities become available.'