Troubled real estate investment trust Balanced Commercial Property Trust has sold off offices in response to a strategic review.
As of today (July 12) the trust was trading at a discount of 22.8 per cent, reduced from the 28.5 per cent discount seen in April.
In a stock exchange announcement this morning, it announced two further office sales in Manchester and London as part of a strategy to reduce the portfolio's exposure to the office sector.
It marks the sixth sale of office buildings since December 2023 totalling £110.5mn.
Exposure to the sector is now down to 17.8 per cent from 29.6 per cent in June 2023.
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."
He added the food and beverage sector has been resilient in recent years and is an increasingly attractive sub-sector for investors.
The company is shifting focus to the food and beverage sector, which it thinks can yield superior rents and longer leases.
It has 172 units and 40 buildings, with food and beverage representing 42 per cent of tenants at March 2024, up from 32 per cent at the same time the previous year.
Kirby said: "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.”
In April, the board of BCPT initiated a strategic review into its future to address it trading at a discount.
The outcome of the review is expected to be announced in the third quarter of 2024.
tara.o'connor@ft.com
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