Derwent London has sold more than £200m of assets so far this year, but has said it is steadfast in its commitment to the capital.
In a Q3 update published this morning, chief executive Paul Williams said: “Despite recent political and economic uncertainty, occupier demand in London remains good for the right product and the flight to quality continues.”
Just shy of £140m of assets were sold in Q3, including Bush House, WC2, for £83.9m, 41% above its December 2021 book value.
Williams added that plans to reinvest in two flagship West End developments – 25 Baker Street and Network, W1 – were keeping to schedule. The schemes will add 435,000 sq ft to the portfolio.
Lettings in the first nine months of 2022 totalled £9m, at an average 12.7% above December 2021 ERV. A further £1.1m of rent is under offer. Vacancy rose from 6.5% at the end of June to 6.9% at 30 September.
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