Derwent London doing well and debt decreased

Property group Derwent London has continued its strong letting progress and further rental growth during the third quarter, the firm said.

During the period the firm made 27 transactions with a rental income of £4.8m per annum, while open market lettings in the quarter were 8.8% above estimated rental values at 31 December 2010.

The firm's Angel Building is now fully let following a further letting to Expedia in November, while three key planning consents totalling 460,000 sq ft were obtained in the third quarter.

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The group's vacancy rate is 0.8%, compared with 5.9% at the start of the year and 4.0% at June 2011.

As well, net debt decreased to £864.0m at 30 September 2011, reflecting an overall loan to value ratio of 32.8%.

The group was keen to emphasise that it remains well placed with undrawn committed bank facilities of £449m plus £530m of uncharged properties.

John Burns, chief executive officer of Derwent London, said: "Although the national and global economies remain fragile, the central London office market has continued to perform well and this is demonstrated by our excellent letting achievements and our low vacancy rate."

The share price fell 0.3% to 1,664p by 08:56.

NR