Derwent London PLC on Thursday said it experienced a strong performance in the first quarter with an increase in new lettings and a reduction in vacancies and EPRA loan to value ratio.

Derwent is a London-headquartered property investor and developer owning 70 buildings valued at £5.4 billion as at December 31.

Derwent said letting activity in the first quarter of 2023 totalled £17.1 million, on average 6.6% above its estimated rental value in December. These included aretail letting at 1 Oxford Street to Uniqlo Co, Ltd and a pre-let at 25 Baker Street to PIMCO Europe Ltd. The Baker Street property is now 55% pre-let or sold.

Derwent said its European Public Real Estate Association vacancy rate decreased to 4.9% on March 31 from 6.4% on December 31. It reported an EPRA LTV ratio of 23% on March 31, down from 24% on December 31.

Derwent said net debt decreased during the quarter by 2.5% to £1.23 billion on March 31 from £1.26 billion on December 31. Cash and undrawn facilities increased by 5.7% to £610.0 million from £577.0 million.

The firm added that construction works on the Baker Street property are now above ground with completion expected in the first half of 2025. Demolition and piling are now complete at its Network W1 development with basement works in progress. Completion is anticipated for the second half of 2023.

‘London, particularly the West End, is busy and people are back in the office,’ commented Chief Executive Officer Paul Williams. He said the strong quarterly performance and new lettings showed that ‘Occupier demand continues to favour amenity-rich, well designed and sustainable space’.

Derwent’s shares were down 1.1% in London on Thursday afternoon at 2,328.00 pence each.

Copyright 2023 Alliance News Ltd. All Rights Reserved.