BCPT Agrees Sale of Portfolio's Largest Office Asset

To: RNSDate: 14 February 2024LEI Number: 213800A2B1H4ULF3K397 From: Balanced Commercial Property Trust Limited

Sale Activity

BCPT agrees sale of portfolio’s largest office asset

Balanced Commercial Property Trust Ltd (‘BCPT’ or the ‘Company’) today announces that, as part of its stated strategy to reduce its exposure to the challenged UK offices sector and rebalance its portfolio, the Company has exchanged contracts on the sale of the Leonardo Building in Crawley, a 110,000 sq. ft. out-of-town business park office. The sale has been exchanged unconditionally based on a headline price of £26.1m, representing a 6.1% discount to the December 2023 independent valuation. The net realisation is subject to the deduction of rental top-ups calculated at the date of completion in March 2024.

The property, which BCPT has owned since 2015, is the largest office holding within the Company’s portfolio by capital value, is located in the Manor Royal Business District and occupied in its entirety by Virgin Atlantic until 2032.

The sale will reduce BCPT’s portfolio exposure to offices from 24.4%[1] to 22.2% by capital value (based on the December 2023 independent valuation). Further targeted disposals are planned and the Company is in active discussions with several potential buyers.

Since the beginning of the year, BCPT has announced the disposal of four office holdings, raising capital proceeds totaling £68.865m delivered at an aggregate discount of 2.6% to the preceding independent valuation[2]. Three of these sales are regional out of town offices, which is a structurally challenged sector of the market.

Richard Kirby, Fund Manager of BCPT, said: “Our investment process has always focused on high quality real estate with strong fundamentals. The value in this approach is underlined by our ability to execute the disposal of non-core office holdings at resilient pricing.

Throughout 2024, we will continue to re-balance our portfolio towards targeted growth sectors with resilient occupier markets, primarily select sub-markets within industrial & logistics and operational alternatives. We expect to announce further disposal activity in the short term as we continue to strategically reduce our exposure to the office sector.”

All enquiries to:

Richard KirbyCT Real Estate Partners LLPTel: 0207 499 2244Innes UrquhartWinterflood Securities LimitedTel: 0203 100 0265Dion Di Miceli / Tom MacDonald / Stuart Muress / James AtkinsonBarclays Bank PLC0207 623 2323BarclaysInvestmentCompanies@barclays.com