Demand remains strong at Derwent

Derwent London said on Tuesday that demand for property remained "good", despite the uncertain political and economic climate.

The real estate investment trust said it had signed new leases worth £1.9m on 31,700 sq ft in the third quarter, including two lettings at 43 Whitfield Street W1. Lettings in the first nine months of the year now total £9m on 141,000 sq ft, on average 12.7% above the estimated rental value.

The EPRA vacancy rate was 6.9% at 30 September, compared to 6.5% as at 30 June.

The firm, which has around 5.6m sq ft of commercial real estate, predominantly in central London, added that the EPRA loan-to-value was 21.7% in the third quarter, following the receipt of disposal proceeds. Disposals - which included Bush House WC2 - totalled £139m after costs in the quarter.

Paul Williams, chief executive, said: "Despite recent political and economic uncertainty, occupier demand in London remains good for the right product and the flight to quality continues.

"We have a strong balance sheet and with disposal proceeds in the year to date of £205m, we are reinvesting in two distinctive West End developments, where supply remains constrained."

As at 0930 GMT, shares in the FTSE 250 firm were trading 1% lower at 2,204p.