Derwent London is “firing on all cylinders” after posting a 15.4% hike in its net asset value to 1,701p in 2011.
The central London REIT said its strong NAV increase – up from 1,474p at the end of December 2010 – was led by a £172.1m hike in values, driven by rising rents in the technology, media and telecoms sector.
Its portfolio rose in value by 7.6% to £2.6bn, following estimated rental value growth of 6.3%. The group’s West End assets rose by 8.1%, City borders by 7.1% and Scotland by 1.5%.
The portfolio reflects a 4.4% net initial yield, following yield compression of 16bp in the year to the end of December.
The group had a record year for lettings, signing 100 new deals across 495,000 sq ft totalling £16.7m pa. Its vacancy rate at the year end was 1.3%, significantly down from 5.9% a year earlier.
It is on site or due to start 500,000 sq ft across seven projects, and has sold a 50% stake in 1-5 Grosvenor Place, SW1, for £60m to Grosvenor as part of its jv to develop a luxury hotel, office and residential scheme at Hyde Park Corner.
The group’s LTV stands at 32%, compared with 35.7% a year earlier, reflecting net debt of £865m.
bridget.oconnell@estatesgazette.com
