Thursday 8 August 2019 4:29 pm

Derwent London sells Clerkenwell office block for £103m

Property developer Derwent London has exchanged contracts to sell The Buckley Building in Clerkenwell for £103m, the company announced as it reported boosted rental income for the first half of the year. 

New lettings in the first half totalled £18.1m, 7.5 per cent above December 2018 estimated rental value. Net rental income was up 7.1 per cent to £86.3m.

Read more: Derwent developments bring major boost to London

The developer completed the Brunel Building in Paddington during the first half, and 98 per cent of the office space has been let. It has signed off on two building contracts totalling £252m. 

In the second half so far lettings have reached £5.1m. 

Going forward, the company said demand for London office space remains strong, particularly in the flexible office sector. 

Derwent raised its interim dividend 9.9 per cent to 21p per share from 19.1p in 2018.

Derwent London chief executive Paul WIlliams said: “Our £18m of new lettings and low vacancy rate demonstrate the continuing strength of occupier demand for Derwent London’s product.

“The commitment to our development strategy has increased our earnings potential, and was a major contributor to our first half total return of 3.3 per cent. 

Read more: Derwent London's shares rise on new lettings

“Recent refinancing activities have further strengthened our financial position with an average debt maturity of over eight years. 

“We believe the Group is well positioned to deliver the many opportunities within its dynamic portfolio.”