Derwent London PLC on Thursday reported strong year-to-date lettings’ activity as it signs new leases.
Shares in the London-based property investor and developer jumped 9.7% to 2,024.00 pence each in London on Thursday morning.
Derwent said lettings in the year-to-date totalled £8.5 million, up 10% from December’s estimated rental value.
Key lettings include Featherstone Building in East London to Tide and Avalere Health at a combined annual rent of £1.9 million, and the rental of 25 Baker Street to Moelis at an annual rent of £4.9 million.
The landlord added that the European Real estate Association vacancy rate at September 30 fell to 3.7% from 4.5% at June 30.
Chief Executive Officer Paul Williams commented: ‘London’s diverse occupier base continues to prioritise quality, amenity and location. Our distinctive portfolio has benefitted from these trends, with ongoing strong letting activity in [the second half], averaging 10% ahead of December ERV. The opening of our second customer lounge is well-timed to further reinforce our appeal. The investment market remains subdued, but our strong balance sheet positions us well for the opportunities ahead.’
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