23rd May 2007 10:30
Derwent London PLC23 May 2007 23 May 2007 Derwent London plc ("Derwent London" / the "Group") AGM STATEMENT At the Group's Annual General Meeting being held today, Robert Rayne, Chairman,will make the following comments: "With the integration of the newly merged group successfully completed,management focus is now on the conversion to a REIT and on extracting value fromthe enlarged business. "The target date for conversion to REIT status is the 1st July 2007 and we willshortly be sending a circular to shareholders seeking the necessary approvals.Our ensuing strategy is to work towards a REIT focused exclusively on centralLondon real estate. To achieve this, provincial and non-core assets are beingsold. The majority of the disposals will occur post REIT conversion in order tobenefit from the saving of capital gains tax that the REIT environment offers.We have previously announced the sale of Winchester Road, Swiss Cottage, NW3 for£18.3million, £8.0 million in excess of the latest valuation. A number offurther sales are now at an advanced stage and marketing of our substantialresidential site at Greenwich has commenced. Together, these should realise inexcess of £150 million. "We continue to make good progress on our extensive pipeline of current andfuture refurbishment and redevelopment projects. Qube, the 10,000 m2 office/retail development in Tottenham Court Road, Fitzrovia, W1 will be completed bySeptember 2007. At this early stage, potential tenants are already showinginterest at rents in excess of those underlying the latest valuation,demonstrating that this attractive product will be well received. The AngelCentre at Islington, N1 offers an early opportunity to create value within thenewly merged group. Here, architectural studies show that the floor area can besignificantly increased by reconfiguring the existing space. A lease surrenderhas been agreed with the tenant of the 15,000 m2 office building although therent of £4.2 million per annum will be paid until 2010. During this period weintend to finalise our plans for the refurbishment and commence works. "Elsewhere, construction is underway at Portobello Dock, Ladbroke Grove, W10 andwork is about to commence at Gresse Street, Noho, W1. At the City RoadEstate, EC1, a planning decision is awaited for a mixed use scheme whilst atNorth Wharf Road, Paddington, W2, and 1-5 Grosvenor Place, Belgravia, SW1,planning applications for major projects are in the process of being submitted. "Tenant demand for space in our central London Villages remains very strong andso far excellent rental growth has been seen during the current year. We expectthis pattern to continue given the insufficient supply of Grade A offices in theWest End. "The ability to drive value through successful lettings and imaginativedevelopment and refurbishment programmes remains crucial. Derwent London hasbuilt an excellent track record of performance in both these areas and has aportfolio packed with opportunities for capital and income growth. We lookforward to reporting to you later in the year on the Group's progress." -ENDS- For further information please contact: Derwent London Tel: 020 7659 3000 John Burns Financial Dynamics Tel: 020 7831 3113 Stephanie Highett/Dido Laurimore This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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