The Balanced Commercial Property Trust (BCPT), valued at £554 million, has announced it is exploring sale options as part of a comprehensive strategic review aimed at boosting returns and correcting a 28.5% discount on its share price. This significant step is disclosed just two months before a pivotal continuation vote.

Amid challenging economic conditions and a tough property market, influenced by high interest rates and capital market dislocations, BCPT is evaluating various strategies to enhance shareholder value, including a potential sale, although no discussions with buyers are currently underway.

Despite consistent performance in recent years, the discount on BCPT’s shares has prompted the board to consider a range of comprehensive measures. Paul Marcuse, Chairman of BCPT, discussed the efforts in reshaping the portfolio post the challenges faced during the Covid-19 pandemic and subsequent economic and geopolitical disruptions. He noted the trust’s shift away from less favourable sectors and efforts to liquidate assets to provide liquidity for strategic manoeuvres. Marcuse also highlighted the trust’s appealing monthly dividend as a significant benefit to shareholders.

The review will explore options such as continuing the trust with additional measures to decrease the share price discount, initiating a managed wind-down, or altering the investment strategy. This strategic evaluation will precede a crucial continuation vote set for later this year.

Founded in 2005 and managed by Columbia Threadneedle’s Richard Kirby, BCPT aims to maintain a diversified portfolio of UK commercial properties.