7th May 2015 06:53
LONDON (Alliance News) - Derwent London PLC on Thursday said it has secured more lettings in the first four months of the year than in the whole of 2014, as its vacancy rate fell and the group said it has a robust development pipeline in place.
The FTSE 250-listed property company said it has secured 225,400 square feet of lettings in the four months to the end of April, securing GBP11.3 million per year in rent. The rental income secured in the year so far is 23% ahead of the total the company secured across 2014, it said.
The group's vacancy rate fell to 1.9% in the period, down from 4.1% in December, on the back of the robust letting activity in the first four months.
Derwent said it has completed 70,500 square foot of developments in the year so far, with all of this either let or exchanged, with 933,300 square foot either under construction or due to be completed in 2015.
"Our recent letting activity supports the group's confident view of the central London occupier market and the decision to proceed with two significant developments in Fitzrovia. In addition, the acquisition of 20 Farringdon Road will provide a substantial future redevelopment opportunity opposite a major Crossrail interchange," said Chief Executive John Burns.
"We continue to expect overall rental growth of around 6-8% across our portfolio, and we have seen property yields tighten further in the first quarter of 2015," Burns added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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