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Derwent London PLC on Thursday reported that rent collection levels in the first quarter were in line with pre-pandemic levels again.
Further, the FTSE 250 firm said that it acquired a new property in London for £239 million before costs.
The property developer and landlord focused on central London said overall rent collection reached 98% in the first quarter of 2022, in line with pre-pandemic levels, with 99% of office rents collected.
Its EPRA vacancy rate stood at 3.1% at March 31, up from 1.6% as at December 31. It noted that one-third of the year-end vacancy has already been let or is under offer.
Derwent London said it has achieved £3.9 million of new leases year to date, up 8.2% on the estimated rental value at December-end.
‘With the shortage of grade A space becoming more apparent, many occupiers are prepared to pay premium rents for space that meets their requirements,’ the Derwent said.
Separately, the property developer reported that it signed a deal to acquire a site at City Road Island EC1 from the Oriel joint initiative.
Oriel is a joint initiative between Moorfields Eye Hospital NHS Foundation Trust, the UCL Institute of Ophthalmology and Moorfields Eye Charity.
The deal is still dependent on final treasury approval, which is expected in the second half of this year, as well as the vacant possession of the site, which is anticipated in early 2027.
Derwent will pay £239 million on completion of the acquisition, which it noted it in line with the market valuation for the estate.
‘London is busy again and maintains its global appeal in an uncertain macro environment. The flight to quality continues, our portfolio is well positioned and we are seeing a high level of enquiries and viewings,’ Chief Executive Paul Williams said.
Shares were up 4.0% at 3,016.00 pence each on Thursday midday in London.
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