TIDMDLN
RNS Number : 1958L
Derwent London PLC
24 April 2015
24 April 2015
Derwent London plc ("Derwent London" / "the Group")
DERWENT LONDON SECURES OVER GBP3M OF ADDITIONAL RENT TAKING
NEW LETTINGS TO GBP10.6M SO FAR IN 2015
Derwent London has secured GBP10.6m pa of rents from new
lettings in the year to date, which already exceeds the GBP9.2m we
achieved in the whole of 2014. Recent transactions total more than
GBP3m pa, with the principal ones shown below.
At the recently acquired Angel Square, Islington EC1 the Group
has let 40,700 sq ft of offices in Block Two to The Office Group,
the flexible office space provider. The occupier is taking a
10-year lease with a landlord's break from year five at a base rent
of GBP1.4m pa, reflecting GBP35 per sq ft. The incentives are
equivalent to a nine-month rent free period. The Group will receive
a share of The Office Group's profits above a minimum level. Angel
Square is a 128,700 sq ft office property acquired in November
2014. The passing rent at acquisition was GBP2.4m pa, but the
majority of the leases expired in March 2015. In the last two
months we have re-let over 75% of the building, and renewed one
lease for a combined income of GBP3.7m pa. This newly let income
alone represents a 54% increase on the property's income at the
time of acquisition, and the Group will refurbish the 25,000 sq ft
balance of the property upon vacant possession.
At the Davidson Building, Covent Garden WC2, where four floors
totalling 23,200 sq ft have recently been refurbished, the Group
has let 10,600 sq ft to two occupiers on 10-year leases with breaks
in year five. The combined rent is GBP0.8m pa equating to GBP80 per
sq ft on the terraced penthouse fifth floor (4,370 sq ft) and
GBP72.50 per sq ft on the fourth floor (6,230 sq ft). Both leases
have minimum rental uplifts in year five. There is a further 12,600
sq ft available at this property.
At the Tea Building, Shoreditch E1, a rent of GBP47.50 per sq ft
(GBP0.4m pa) was attained after Feed, an independent communications
agency, took just under 8,000 sq ft on a five-year lease. This
exceeded the previous high of GBP39 per sq ft which was achieved
last year.
At Morelands, Clerkenwell EC1, existing tenant Spark44, a
marketing and communications agency, has taken further space at a
rent of GBP55 per sq ft or GBP0.3m pa, with a minimum uplift to
GBP60 per sq ft on first review, on a 5,370 sq ft unit for nine
years with a tenant's break at five years.
John Burns, Chief Executive Officer of Derwent London,
commented:
"These recent deals are further confirmation of the continuing
strength of the central London letting market that we reported with
our results in February. We are delighted that we have achieved our
initial plans for Angel Square so quickly."
For further information, please contact:
Derwent London John Burns, Chief Executive Officer
Tel: +44 (0)20 7659 3000 Celine Thompson, Head of Leasing
Quentin Freeman, Head of Investor
Relations
Brunswick Group Simon Sporborg
Tel: +44 (0)20 7404 5959 Nina Coad
Notes to editors
Derwent London plc
Derwent London plc owns a portfolio of commercial real estate
predominantly in central London valued at GBP4.2 billion as at 31
December 2014, making it the largest London-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.
Landmark schemes in our portfolio of 5.7 million sq ft as at 31
December 2014 include Angel Building EC1, The Buckley Building EC1,
White Collar Factory EC1, 1-2 Stephen Street W1, Horseferry House
SW1 and Tea Building E1.
In December 2014 Derwent London topped the real estate sector
for the fifth year in a row and was placed ninth overall in the
Management Today awards for 'Britain's Most Admired Companies'.
Also in 2014 the Group won the Property Week 'Developer of the
Year' and the RICS London Commercial Award, and was shortlisted for
awards by Architects' Journal, BCO, NLA and OAS. The Group was also
awarded EPRA Gold for corporate and sustainability reporting.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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