Friday, July 12, 2024 7:58 AM
Share Share on Facebook X Share on Twitter LinkedIn Share on LinkedIn WhatsApp Share on WhatsApp Email Share via email Balanced Commercial Property Trust has sold its offices on King Street, Manchester. Photo: Balanced Commercial Property Trust
Balanced Commercial Property Trust has closed more offices as part of a strategy to focus more on the food and drink sector.
The London-listed company has sold two offices: a 22,300 sq ft site with space for 10 tenants on Birchin Lane in London, and an 83,500 sq ft mixed-use lettable complex on King Street in Manchester.
The sale reduced the company's exposure to the sector by approximately 18 percent on a capital value basis.
Balanced Commercial Property Trust has raised a total of £111 million through the sale of six office properties since the start of 2024. The company said it would use the proceeds to repay its credit facilities in full. It also said it had £100 million in cash remaining.
The sale is part of the company's strategy to “rebalance” its portfolio, focusing on the “attractive and growing” food and beverage sector rather than the “challenging” office market.
Over the past 12 months, the company has repurposed traditional retail space at its flagship St. Christopher's Place facility, opening restaurants such as Bar Croqueta, Morena and Noreen in Sunday, Brooklyn.
Richard Kirby, fund manager at Balanced Commercial Property Trust, said: “We have disposed of six office properties since December 2023 and the sale of these two office properties was well timed to optimise exit value in the asset lifecycle.”
“Despite a challenging market environment for the office sector, the pricing achieved further underlines the liquidity of the portfolio.”
“The food and beverage sector has proven extremely resilient in recent years and is an increasingly attractive sub-sector of the market for investors.”
“Our flagship assets are well positioned to take advantage of these trends.
“St Christopher’s Place has weathered challenging times during the pandemic but we are pleased to see increased activity on site and moving from a period of recovery to a period of growth.”
Read more What does the future hold for the commercial real estate sector in 2024?
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