Derwent London said Thursday it has sold more than 200 million British pounds of property this year and plans further sales to reinvest in new developments.
The London-focused real estate investment trust reported strong leasing activity in a third-quarter update, with new leases signed 10% above estimated rental values and a low vacancy rate of 3.7%.
The disposals have helped reduce net debt to 1.46 billion British pounds and strengthened the company's ability to fund its development pipeline, it said.
"Disposals of over £200m so far in 2025 have strengthened our financial capacity for reinvestment into accretive development projects," Chief Executive Paul Williams said.
"Looking forward we are targeting a higher level of asset sales."
The company is allocating capital to major projects that are targeting a profit on cost of between 15% and 25%.
Derwent London reaffirmed its guidance for portfolio rental value growth of 3% to 6% for 2025, stating that higher quality buildings are expected to outperform.
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