Derwent signs £4.5m of new leases

Derwent London said it had benefited from solid demand for high-end office space in the third quarter, as it secured a number of new leases.

The FTSE 250 real estate investment trust, which specialises in offices in London, said it had signed £4.5m of leases in the second half so far, 9.8% above December 2023’s estimated rental value.

Leasing activity now stands at £13.3m in the year-to-date, up 8.5%.

The third-quarter loan-to-value was 28.9%, marginally below June’s 29%.

Derwent said it had seen "ongoing leasing momentum" during the quarter.

Chief executive Paul Williams continued: "With strong occupier demand for high-quality buildings in the right locations, we are seeing rental growth across our London villages.

"We continue to see an attractive, supply-constrained market for our innovative and design-led space.

"There is increased interest across the investment market and volumes are expected to pick up into 2025."

Derwent said on-site projects 25 Baker Street W1 and Network W1 were "progressing well", while design stage 3 of Holden House W1 was being finalised ahead of construction starting towards the end of 2025.

As at 1300 GMT, shares in Derwent were up 3% at 2,132p.