Balanced Commercial Property Trust has shed more offices as part of its strategy to focus more on the food and beverage sector.
The London-listed firm has sold two offices. A 22,300 sq ft site with space for 10 tenants located on Birchin Lane in London, and a 83,500 sq. ft multi-let complex on King Street in Manchester.
The sales have reduced the company’s exposure to the sector by almost 18 per cent in capital value terms.
Balanced Commercial Property Trust has now sold six offices since the start of 2024, raising a total of £111m, which it said would be used to repay its credit facility in full. It said it would also have £100m in cash left over.
The sales form part of the firm’s strategy to “rebalance” its portfolio, focusing less on the “challenging” office market and more on the “attractive and growing” food and beverage sector.
Over the past 12 months the company has repurposed a number of traditional retail units at its flagship property at St Christopher’s Place, adding restaurants Sunday in Brooklyn, Bar Kroketa, Morena and Noreen.
Richard Kirby, fund manager of Balanced Commercial Property Trust, 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 food and beverage sector has proven itself to be highly resilient in recent years and an increasingly attractive sub-sector of the market for investors.
“The Company’s flagship asset is well-positioned to take advantage of these trends.
“St Christopher’s Place endured a challenging time during the pandemic but I am pleased to see the buoyant levels of activity at the estate, signalling the estate moving from recovery into a growth phase.”