BCPT offloads two more offices in £1bn sell-down

Balanced Commercial Property Trust has sold two more assets from its portfolio as it seeks to potentially wind up the fund.  The group has sold the 22,300 sq ft 7 Birchin Lane, EC3, and 83,500 sq ft 82 King Street in Manchester. The two offices have been sold for a combined £41.6m, representing an average discount to the 31 March 2024 independent valuations of 7.2%. Following the sales, BCPT said its portfolio exposure to the office sector had reduced to 17.8% by capital value, down from 29.6% as at 30 June 2023. BCPT has now completed six office disposals since the beginning of December 2023, raising £110.5m at an average discount to the preceding valuations of 4.4%. Some £1bn of assets could ultimately be sold as part of a strategic review of the fund. Alongside the wind down and portfolio sale, the board is also looking at continuing attempts to narrow the trading discount, changing investment strategy and selling the company. It expects to announce the conclusion of the review in the third quarter of this year. Barclays is handing the sale process. Proceeds from sales so far have allowed BCPT to repay its revolving credit facility in full and it will have cash in excess of £100m on completion of these sales. 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.” BCPT has also secured four new leases at St Christopher’s Place, W1, with the aim of capitalising on strong fundamentals and growing demand in the food and beverage  sector. Modern American restaurant Sunday In Brooklyn has agreed to take 10-12 James Street and 13-14 Gees Court, while Noreen, a new Middle Eastern restaurant concept, has agreed to take 28-32 St Christopher’s Place. Bar Kroketa, a Spanish restaurant and bar concept, and Morena, an all-day dining concept with a Latin-American inspired menu, have also both agreed new leases. See which agents are doing the most deals in the West End >>