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Balanced Commercial Property Trust (BCPT) has agreed to be acquired by private investment firm Starwood Capital in a deal valued at £673.5 million. Under the terms of the agreement, BCPT shareholders will receive 96p per share in cash, representing a premium of approximately 21.5% over the closing share price of 79p on 12 April, the last business day before the offer period began.
Despite the premium, the offered price reflects an 8.7% discount compared to BCPT’s most recent unaudited net asset value per share of 105.1p.
BCPT’s chairman, Paul Marcuse, explained that the board had explored several strategic options for the company, including continuing with a revised strategy, managing a wind-down of the portfolio, and considering the partial or full sale of BCPT’s share capital or assets. Throughout this process, the board evaluated interest from various credible third parties, ranging from UK institutional capital and private equity firms to listed real estate peers and asset managers.
Marcuse noted that the board was pleased with the level of interest shown in BCPT and its portfolio during the strategic review. Each strategic option was carefully considered and benchmarked against the potential returns from a managed wind-down of the company’s assets.
After thorough deliberation and independent third-party advice, the board concluded that the proposed transaction with Starwood Capital offers the best outcome for shareholders. This decision was based on the full cash exit provided by the deal, which offers a significant premium to BCPT’s undisturbed share price.
The acquisition by Starwood Capital is seen as a successful conclusion to the strategic review, ensuring a favorable outcome for BCPT’s shareholders. The agreement highlights the value of BCPT’s assets and the interest from various market players in the company’s portfolio. The board’s decision reflects a commitment to securing the best possible outcome for shareholders while navigating a complex market environment.
