Demand remains strong at Derwent

(Sharecast News) - Derwent London said on Tuesday that demand for property remained "good", despite the uncertain political and economic climate.

The real estate investment trust said it had signed new leases worth £1.9m on 31,700 sq ft in the third quarter, including two lettings at 43 Whitfield Street W1. Lettings in the first nine months of the year now total £9m on 141,000 sq ft, on average 12.7% above the estimated rental value.

The EPRA vacancy rate was 6.9% at 30 September, compared to 6.5% as at 30 June.

The firm, which has around 5.6m sq ft of commercial real estate, predominantly in central London, added that the EPRA loan-to-value was 21.7% in the third quarter, following the receipt of disposal proceeds. Disposals - which included Bush House WC2 - totalled £139m after costs in the quarter.

Paul Williams, chief executive, said: "Despite recent political and economic uncertainty, occupier demand in London remains good for the right product and the flight to quality continues.

"We have a strong balance sheet and with disposal proceeds in the year to date of £205m, we are reinvesting in two distinctive West End developments, where supply remains constrained."

As at 0930 GMT, shares in the FTSE 250 firm were trading 1% lower at 2,204p.