COLUMBIA Threadneedle-run Balanced Commercial Property Trust has reached a deal to be sold for £673.5m despite objections from its investment manager.

The trust has been managed by Columbia Threadneedle since it was created in 2005, and began a strategic review this April after shareholders told it there was "need for change from the status quo".

Balanced Commercial Property Trust also confirmed in June that it had received several offers from third parties to buy up its portfolio.

Under the proposed transaction, shareholders will receive 96p per share from private investment firm Starwood Capital, compared to the trust's current share price of 85.5p, in a deal recommended by the board unanimously to shareholders.

However, a Columbia Threadneedle spokesperson told City A.M. that the manager was "disappointed" by the board's decision to recommend the offer, as "there remains considerable upside to the portfolio of assets, particularly at this point in the market cycle".

"We have continually repositioned the portfolio through market cycles towards high quality assets which we believe represent excellent value creation opportunities. In our view, the current portfolio is well positioned to take advantage of an improving market environment, with lower interest rates, pricing stability and improving sentiment," the spokesperson added.

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