Business
AGM Statement
AGM Statement.
About this update from Derwent London Plc
[{"type":"text","content":"\n Derwent London PLC\n23 May 2007\n\n\n\n23 May 2007\n\n\n\n Derwent London plc ('Derwent London' / the 'Group')\n\n\n AGM STATEMENT\n\n\nAt the Group's Annual General Meeting being held today, Robert Rayne, Chairman,\nwill make the following comments:\n\n\n\n'With the integration of the newly merged group successfully completed,\nmanagement focus is now on the conversion to a REIT and on extracting value from\nthe enlarged business.\n\n\n\n'The target date for conversion to REIT status is the 1st July 2007 and we will\nshortly be sending a circular to shareholders seeking the necessary approvals.\nOur ensuing strategy is to work towards a REIT focused exclusively on central\nLondon real estate. To achieve this, provincial and non-core assets are being\nsold. The majority of the disposals will occur post REIT conversion in order to\nbenefit from the saving of capital gains tax that the REIT environment offers.\nWe have previously announced the sale of Winchester Road, Swiss Cottage, NW3 for\n£18.3million, £8.0 million in excess of the latest valuation. A number of\nfurther sales are now at an advanced stage and marketing of our substantial\nresidential site at Greenwich has commenced. Together, these should realise in\nexcess of £150 million.\n\n\n\n'We continue to make good progress on our extensive pipeline of current and\nfuture refurbishment and redevelopment projects. Qube, the 10,000 m2 office/\nretail development in Tottenham Court Road, Fitzrovia, W1 will be completed by\nSeptember 2007. At this early stage, potential tenants are already showing\ninterest at rents in excess of those underlying the latest valuation,\ndemonstrating that this attractive product will be well received. The Angel\nCentre at Islington, N1 offers an early opportunity to create value within the\nnewly merged group. Here, architectural studies show that the floor area can be\nsignificantly increased by reconfiguring the existing space. A lease surrender\nhas been agreed with the tenant of the 15,000 m2 office building although the\nrent of £4.2 million per annum will be paid until 2010. During this period we\nintend to finalise our plans for the refurbishment and commence works.\n\n\n\n'Elsewhere, construction is underway at Portobello Dock, Ladbroke Grove, W10 and\nwork is about to commence at Gresse Street, Noho, W1. At the City Road\nEstat...