Derwent delivers solid rental growth in Q1

9th May 2024 08:06

(Sharecast News) - Property investor and developer Derwent London has said that healthy demand has driven rental growth since the start of 2024.

The company, which owns nearly 70 buildings across Central London worth a combined £4.9bn, signed new leases totalling £5.4m over the year to date, with a further £4.3m under offer.

In the first quarter, £2.4m of lettings were signed at 9.2% above the estimated rental value (ERV) as of December, "with activity across the portfolio", Derwent said. Some £3.0m have been signed so far in the second quarter.

Meanwhile, by 31 March the EPRA vacancy rate had reduced to 3.7% from 4.0% at the start of the year.

Some 58% of space that was available to occupy in January has either been leased or is under offer, with good ongoing interest in the balance, the company said.

"We are seeing further strengthening in occupational demand for our well-located, design-led buildings. Rental growth has increased as demonstrated by our leasing performance against ERV," said chief executive Paul Williams.

The stock was up 0.6% at 2,231.12p by 0847 BST.