Derwent London to raise £175m

17th May 2011 07:24

Derwent London said it will raise a £175m convertible bond to fund future plans as the office market in the capital continues to perform strongly. The group announced the launch of the convertible bond to help fund its development pipeline and increase resources for future acquisition opportunities, it said in a company statement.Derwent said it completed 21 transactions in the three months ended 31 March on floorspace of 130,500 sq ft, with annual rental income of £3.6m.Another 50,500 square feet of office space has been let since the end of the quarter, bringing in annual rent of £2.1m. Commenting on the first quarter, CEO John Burns said, "The central London office market continues to perform strongly. We have made excellent progress on lettings, especially at the Angel Building, and we are advancing projects in the development pipeline.""We are seeing increased opportunities to add to our portfolio and, underpinned by the capital raising we have announced today, will continue to pursue these. We remain confident of the prospects for our operating market."CJ