Derwent London predicted a further recovery in the London office rental market in a strong interim management statement this morning.
Its chief executive predicted a 5% to 7% growth in rents for the year across its portfolio, which has a vacancy rate of only 0.9%.
During the quarter it completed £38m of disposals and £13m of acquisitions. It also completed 57,500 sq ft of lettings equating to £2.4m of rental value per annum.
It also utilised a £100m debt facility from New York Life during the period and at the end of April has undrawn facilities of £390m.
John Burns, chief executive said:
“We continue to experience deep demand for Derwent London’s brand of space. This gives us the confidence to drive our extensive development programme forward and to reiterate our 2014 guidance for portfolio rental value growth of around 5% to 7% and for property yields to remain firm.”