Bloomberg News

Derwent Cuts Vacancy Rate to 0.8% After Gaining Tenants

November 17, 2011

(Updates with closing share price in last paragraph.)

Nov. 17 (Bloomberg) -- Derwent London Plc, a developer of mid-priced office buildings in central London, said its vacancy rate fell to 0.8 percent after the company agreed to 27 leases with tenants in the third quarter.

Derwent’s vacant space dropped from 5.9 percent at the start of the year, the London-based company said in a statement today. The leases that were signed in the third quarter will generate 4.8 million pounds ($7.6 million) in annual rental income, Derwent said.

“Although the national and global economies remain fragile, the central London office market has continued to perform well,” Chief Executive Officer John Burns said in the statement.

Net debt was 864 million pounds at the end of the third quarter, giving a loan-to-value ratio of 32.8 percent, Derwent said. Debt was 904.5 million pounds at the end of the previous quarter, the company said in August.

Derwent fell 48 pence, or 2.9 percent, to close at 1,621 pence in London trading, the lowest since Oct. 26. The shares have dropped 6 percent in the past six months, while the FTSE 350 Real Estate Investment Trust Index has lost 16 percent.

--Editors: Andrew Blackman, Ross Larsen.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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