Contracts exchanged on £30m 82 King Street

Balanced Commercial Property Trust, managed by Columbia Threadneedle, has agreed terms with an unnamed buyer for the 83,500 sq ft Manchester office, the largest in its portfolio.

Metis was appointed to market 82 King Street earlier this year, seeking offers of £30m, a price that would reflect a net initial yield of 7.2%.

A stock exchange filing by BCPT states contracts have been exchanged on the fully-let, 18-storey building and that the deal is expected to complete in September.

“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,” BCPT told its shareholders.

“The fully-occupied building comprises 19 separate commercial demises within a grade one-listed former banking hall alongside a tower constructed in 1996.”

The identity of the buyer has not yet been revealed. Sources Place North West approached suggested Commercial Estates Group and Danish investor Danmerc were both in the running.

Place contacted Metis for comment.

BCPT also disposed of the 22,300 sq ft 7 Birchin Lane in London. Combined, the London and Manchester deals totalled £41.65m.

Richard Kirby, fund manager at 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.”