Derwent London brings forward refurbishment schemes

  Derwent London said it was pushing on with plans to bring forward a number of refurbishment and regeneration schemes in 2011 and 2012 as it updated on trading for the three months ended 31 March.   The group said it secured 21 lettings in the first quarter of the year totalling 72,800 sq ft and generating a rental income of £2.2m pa.   Subsequent lettings have taken this total to 89,700 sq ft with an annual rental income of £2.5m   The group’s vacancy rate is now 2.4%, down from 3.6% at the start of the year   Project activity increased with 135,000 sq ft of refurbishments on-site which are predominantly located in the West End.   The 263,000 sq ft Angel Building development is due to complete at the end of August 2010 with 53% of the floorspace pre-let   The group said it had seen a nominal increase in net debt from £723.4m to £730.5m over the quarter. Committed unutilised bank facilities are £415m.   John Burns, chief executive of Derwent London, said: “Despite economic conditions remaining difficult, our central London operating market has performed well.  In addition to our current projects, we are progressing our plans for a number of refurbishment and regeneration schemes for commencement in 2011 and 2012.   “The reversionary characteristics of our portfolio, and the opportunities within, together with our strong balance sheet, will continue to provide the platform for rental and capital value growth.”   Derwent London said the central London office market continued to strengthen in the first three months of the year with the highest take-up for nearly three years and a further decline in the vacancy rate.   paul.norman@estatesgazette.com