expects tooffload around £100 million of property in 2016, the company said in itsfirst-quarter business update.
Year-to-dateleasing, including pre-lets, amounted to 185,400 square feet of space,reflecting £13.2 million in annual rent. The company said its average lettingsare 6.1% above estimated rental values in December 2015. The EPRA vacancy ratewas at 1.2%.
Onthe development side, the company's estimated rental values increased to £64.7million per annum on its four under-construction projects. The estimatedcapital expenditure to completion is raised to £469 million, according to thenews release. The company also has a number of refurbishment projects slatedfor completion in 2016.
The company said it has submitted a revised planning permission at 80 CharlotteSt. in London for greater demolition of the existing buildings, and expects thefuture capital expenditure on the scheme to increase by £29 million to £236million.
Derwentlanded planning approval for 125,000 square feet of offices and retail atMonmouth House and 280,000 square feet of commercial and residential space atBalmoral Grove. It added that it expects the possession of Monmouth House totake place in 2017. The company added that it has already exchanged aconditional sale contract for Balmoral Grove.
Derwentsaid its net debt increased by £65.7 million in the three months ended March31, raising the total debt to £977.4 million. The loan to value ratio was 19%at the end of the quarter, based on December 2015 valuations. The company saidit also received £105 million in 12- and 15-year U.S. private placements on May4.
DerwentCEO John Burns said the company has seen "little evidence of any slowdown"in rental demand for its product despite a slowdown in investment activityahead of the upcoming EU referendum.