Two further office sales and new lettings at St Christopher's Place
12/07/2024 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
12 July 2024
For Immediate Release
Balanced Commercial Property Trust Limited
("BCPT" or the "Company")
Two further office sales and new lettings at St Christopher's Place
Balanced Commercial Property Trust Ltd (‘BCPT’ or the ‘Company’) is
pleased to announce the successful sale of two further office assets, 7
Birchin Lane, London and 82 King Street, Manchester, as part of the Company's
stated strategy to reduce the portfolio’s exposure to the office sector.
Following these sales, BCPT’s portfolio exposure to the office sector has
reduced to 17.8% by capital value (based on 31 March 2024 valuations), down
from 29.6% as at 30 June 2023. BCPT has now completed 6 office disposals since
the beginning of December 2023, raising aggregate sales proceeds of £110.52
million at an average discount to the preceding valuations of 4.4%. The
proceeds from these sales 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.
In addition, BCPT announces that it has secured four new leases at St
Christopher’s Place with the aim of capitalising on strong fundamentals and
growing demand in the food and beverage (‘F&B’) sector.
Strategic disposals of offices in London and Manchester
These selective disposals follow competitive bidding processes and are in
continuance of BCPT’s portfolio rebalancing strategy, which was announced in
September 2023. The strategy is designed to reduce the Company's exposure to
the more challenging office sector and increase the portfolio’s alignment to
growth sectors and assets, making it more attractive for investors, whilst
also strengthening the Company’s balance sheet.
Since the beginning of December 2023, BCPT has announced the disposal of four
office holdings and, as part of this wider strategy, the Company has also now
disposed of 7 Birchin Lane, London, the Company’s only City of London
holding, and separately exchanged contracts for the sale of 82 King Street,
Manchester for a combined consideration of £41.65 million, representing an
average discount to the 31 March 2024 independent valuations of 7.2%.
The sale of 7 Birchin Lane, which extends to 22,300 sq. ft. and is multi-let
to 10 tenants, has completed following the successful delivery of the
asset’s business plan. 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.
82 King Street, Manchester is a capital intensive, multi-let city-centre
office holding of 83,500 sq. ft. and 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.
Leasing activity at St Christopher's Place reflecting growing demand in the
F&B sector
The Company’s flagship asset, St Christopher’s Place is a unique property;
a prime Central London estate comprising 172 lettable units and 40 buildings,
diversified across the retail, leisure, residential and office sectors.
Over the past twelve months, BCPT has successfully rebalanced the tenant mix
by repurposing traditional retail units to place F&B, an attractive and
growing sector, at the heart of the estate’s offering. Between March 2023
and March 2024, the estate’s exposure to the F&B sector grew to 42% from 32%
by capital value, with further F&B lettings in the pipeline.
The Company's investment manager believes that the estate’s focus on F&B
will drive investment fundamentals with superior rents, longer leases and
improved capitalisation rates, while also enhancing the consumer experience
and occupier dynamics of the estate by extending dwell time, consumer spend
and active trading hours.
As part of this strategy, BCPT has exchanged an agreement for lease at 10/12
James Street and 13/14 Gees Court with Sunday in Brooklyn, a modern American
restaurant serving brunch and dinner. Sunday in Brooklyn will occupy a newly
created anchor unit running from James Street through to Gees Court, which
will revitalise two key entrance points to the estate. A full fit out of the
unit is currently underway and the official opening is imminent.
BCPT has also exchanged an agreement for lease with Noreen, a new Middle
Eastern restaurant concept, at 28-32 St Christopher’s Place, a substantial
double-fronted unit in the heart of the estate. In addition, Bar Kroketa, a
Spanish restaurant and bar concept, and Morena, an all-day dining concept with
a Latin-American inspired menu, have both agreed new leases.
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. 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.”
All enquiries to:
Richard Kirby
CT Real Estate Partners
LLP
Tel: 0207 499 2244
Innes Urquhart
Winterflood Securities Limited
Tel: 0203 100 0265
Dion Di Miceli / Tom MacDonald / Stuart Muress / James Atkinson
Barclays Bank PLC
0207 623 2323
BarclaysInvestmentCompanies@barclays.com
MAR
This announcement is released by the Company and the information contained
within this announcement is deemed by the Company to constitute inside
information for the purposes of Article 7 of the UK version of the EU Market
Abuse Regulation (Regulation (EU) No.596/2014) which forms part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information Service, such
information is now considered to be in the public domain.
LEI Number
The Company's LEI Number is 213800A2B1H4ULF3K397.
Copyright (c) 2024 PR Newswire Association,LLC. All Rights Reserved