Derwent London enjoys strong performance of its Central London offices

REIT releases Interim Management Statement for Q1

Article posted: 17 May 2011

REIT Derwent London has released its Interim Management Statement for the three month period ending 31^st March 2011, announcing an increase in portfolio opportunities and the strong performance of its offices in Central London.

It has completed on two acquisitions since the year end, offices in Victoria, SW1, at 1 Page Street (pictured) for £45m in the Q1 and the headlease of the Network Building, 95-100 Tottenham Court Road W1, for £31m in April.

Contracts have been exchanged for two disposals, the sale of Victory House, 170 Tottenham Court Road, W1, for £37.2m which yields a profit of £10m and of five properties comprising mainly office space in Covent Garden, WC2 for £68m. Together these sales represent a surplus which is approximately 35% above book value.

There have been 21 transactions in Q1 2011 on floorspace of 130,500 sq ft with annual rental income of £3.6m and a further 50,400 sq ft of lettings concluded since 31 March 2011 at £2.1m pa. The open market lettings so far completed in the first half have achieved rents 8.3% above estimated rental values at 31 December 2010.

Derwent London has 165,100 sq ft of space currently under offer at £6m including 93,400 sq ft of office space in Clerkenwell, EC1,  at the Angel Building which would take occupancy at this property to 90%.

In addition the REIT is on site at four major projects totalling 306,000 sq ft at 1 Page Street SW1, the presold Victory House W1, Woodbridge House EC1, and 2-14 Pentonville Road N1, with planning applications for a further 412,000 sq ft soon to be submitted which will bring to over 1.1m sq ft the total area on which planning decisions are pending.

Commenting on the first quarter, John Burns, Chief Executive Officer of Derwent London, said: “The central London office market continues to perform strongly. We have made excellent progress on lettings, especially at the Angel Building, and we are advancing projects in the development pipeline. We are seeing increased opportunities to add to our portfolio and, underpinned by the capital raising we have announced today, will continue to pursue these. We remain confident of the prospects for our operating market and our Group.”

For breaking news relating to office space in Central London follow us on http://twitter.com/officespacenews

Posted by Jules