Balanced Commercial Property Trust (BCPT) has sold two office buildings in London and Manchester for a combined value of £41.6 mln (€49.5 mln).
The 2,072 m2 property at 7 Birchin Lane is multi-let to 10 tenants. A cyclical refurbishment of the suites to enhance ESG credentials and rental values was completed, with the final refurbished suite having been relet in April 2024.
The 7,757 m2 multi-let city centre office holding at 82 King Street in Manchester is the largest single office holding remaining in the portfolio. The fully-occupied building comprises 19 separate commercial demises within a Grade I listed former banking hall alongside a tower constructed in 1996. The contracts for the sale have been exchanged with completion due in September 2024.
The divestment of 7 Birchin Lane, London and 82 King Street, Manchester, is part of a larger plan by BCPT to reduce its exposure to the office sector, focusing instead on growth sectors and assets.
Their office space exposure dropped from 29.6% to 17.8% (based on valuations in March 2024), representing a nearly 40% reduction. Since December 2023, they have now sold off 6 office properties, bringing in a total of £110.52 mln (€131.5 mln), at an average price slightly below previous valuations.
By selling these offices, BCPT has enough money to pay off all their short-term debt and will still have over £100 mln (€119 mln) left over.
Richard Kirby, fund manager of BCPT, said: ‘We have now disposed of six office holdings since December 2023 and these two office sales were at an opportune point in the asset life cycle to optimise exit value. The pricing achieved further underlines the liquidity in the portfolio, despite the challenging market backdrop for the office sector. The F&B sector has proven itself to be highly resilient in recent years and an increasingly attractive sub-sector of the market for investors.’
