Valad reports strong leasing, upturn in sales to owner-occupiers

Valad Property Group has reported strong leasing performance across its European platform in the third quarter. During the three month period, the fund and asset manager of multi-let commercial real estate let 680,000 square feet in the UK alone at a total rent of £2.2 mln per annum. This compares with an average £2.3 mln worth of new lettings in each of the first two quarters in 2009. Portfolio net income has increased due to a marked reduction in tenant defaults in the third quarter.

Rob Howe, Valad's head of Asset Management, UK, commented, 'We are seeing a more stable tenant base and signs of improving leasing activity in our portfolio of 339 properties throughout the UK. Average unit size has increased, income growth is steady and we are running at record-high occupancy levels in our Funds.'

Valad also said there had been a have marked an upturn in sales to owner occupiers of its development stock, with over 15,000 square feet recently sold on three of their recently developed estates in the UK. Valad's estates are designed for mixed tenure and the Group have reported increasing interest from owner-occupiers as firms take advantage of relatively low borrowing costs.