DevSecs pleased with portfolio performance

Property development and investment company Development Securities said activity and investment levels continue at a high pitch in its markets.The group believes the ready supply of Central London office space is falling, and it is currently appraising a number of opportunities where entry price properly reflects value and risk."In our sector, all-property rents continued sideways along their recent plateau with a sustained underlying divergence between material rental growth in Central London and weakness in the regions. Conversely, yields have continued to fall marginally, driven by continuing strong international and domestic investor appetite, especially for prime property," noted David Jenkins, chairman of Development Securities."While net bank lending to property was marginally positive in the first quarter for the first time since Q1 2009, the availability of bank finance remains tightly constrained, being open only to the strongest borrowers and almost invariably only for well-let investment property," Jenkins added.The company's investment portfolio continues to perform well, "with good progress in our asset management strategies in particular at The Broadway, Bexleyheath, Atlantic Village, Bideford and The Furlong, Ringwood," Jenkins opined.Net debt as at the end of April stood at £124m, representing gearing of 37% based on the year-end net asset value of the company of £333.1m.---jh