Last checked at 10 Aug 2023 07:01
10 August 2023
Derwent London plc ("Derwent London" / "the Group") H2 2023 LETTING UPDATE
Derwent London is pleased to announce that it has signed new leases totalling £7.0m since 30 June 2023. Activity includes securing the second major pre-let at 25 Baker Street W1 and the fourth office occupier at The Featherstone Building EC1. This takes letting activity in the year to date to £26.3m.
Key transactions
· | Moelis & Company has pre-let c.50,000 sq ft at 25 Baker Street for a term of 15 years, with a tenant break option at year 10 - the commercial element of the scheme is now 76% pre-let/pre-sold; and |
· | A tech company has leased c.14,000 sq ft at The Featherstone Building for a term of 10 years, with a tenant break at year 5 - the building is now 70% leased. |
Paul Williams, Chief Executive of Derwent London, said:
"We have delivered over £26m of new leases in 2023 to date, a near record level, at an attractive 8.3% premium to December 2022 ERV. Our distinctive and sustainable buildings, with high quality amenity such as our DL/Lounges, are in strong demand with occupiers."
For further information, please contact:
Derwent London Tel: +44 (0)20 7659 3000
| Paul Williams, Chief Executive Emily Prideaux, Executive Director Robert Duncan, Head of Investor Relations |
Brunswick Group Tel: +44 (0)20 7404 5959 |
Nina Coad Emily Trapnell |
Notes to editors
Derwent London plc
Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £5.2 billion as at 30 June 2023, making it the largest London office-focused real estate investment trust (REIT).
Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling.
We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt. We capitalise on the unique qualities of each of our properties - taking a fresh approach to the regeneration of every building with a focus on anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business has a strong balance sheet with modest leverage, a robust income stream and flexible financing.
As part of our commitment to lead the industry in mitigating climate change, Derwent London has committed to becoming a net zero carbon business by 2030, publishing its pathway to achieving this goal in July 2020. In 2019 the Group became the first UK REIT to sign a Revolving Credit Facility with a 'green' tranche. At the same time, we also launched our Green Finance Framework and signed the Better Buildings Partnership's climate change commitment. The Group is a member of the 'RE100' which recognises Derwent London as an influential company, committed to 100% renewable power by purchasing renewable energy, a key step in becoming a net zero carbon business. Derwent London is one of the property companies worldwide to have science-based carbon targets validated by the Science Based Targets initiative (SBTi).
Landmark buildings in our 5.4 million sq ft portfolio include 1 Soho Place W1, 80 Charlotte Street W1, Brunel Building W2, White Collar Factory EC1, Angel Building EC1, 1-2 Stephen Street W1, Horseferry House SW1 and Tea Building E1.
In January 2022 we were proud to announce that we had achieved the National Equality Standard - the UK's highest benchmark for equality, diversity and inclusion. In May 2023 we were recognised on the Sunday Times Best Places to Work List 2023 within the medium-sized organisation category and in the following month we won two OAS awards - West End New Build for Soho Place W1 and Developer of the Year whilst we were also highly commended for The Featherstone Building in the City New Build category. In March 2023 we placed in the top three of the Property Sector in Management Today's Britain's Most Admired Companies awards 2022. In October 2022, 80 Charlotte Street won the BCO's Best National Commercial Workplace award 2022. In 2013 the Company launched a voluntary Community Fund which has to date supported over 150 community projects in the West End and the Tech Belt.
The Company is a public limited company, which is listed on the London Stock Exchange and incorporated and domiciled in the UK. The address of its registered office is 25 Savile Row, London, W1S 2ER.
For further information see www.derwentlondon.com or follow us on Twitter at @derwentlondon
Forward-looking statements
This document contains certain forward-looking statements about the future outlook of Derwent London. By their nature, any statements about future outlook involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. Actual results, performance or outcomes may differ materially from any results, performance or outcomes expressed or implied by such forward-looking statements.
No representation or warranty is given in relation to any forward-looking statements made by Derwent London, including as to their completeness or accuracy. Derwent London does not undertake to update any forward-looking statements whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.