Blackrock delays decision on Scottish investments

PROPERTY PLAYER Blackrock International Land is holding fire on a decision about the future of five Scottish investments until it has met the receiver of its partner in the ventures.

Bank of Scotland appointed a receiver to Edinburgh-based developer Applecross late last week in a bid to recover a £70 million loan to the company.

Dublin-listed Blackrock International Land is a partner in five projects with Applecross in a number of centres in Scotland, including the high-profile redevelopment of BBC Scotland’s old headquarters close to Glasgow’s botanic gardens.

Blackrock yesterday released a statement pointing out that its results for 2008 show that it cut estimates of the value of these properties to reflect market conditions. “The company believes that adequate provision was made in the financial statements against all eventualities in respect of these joint ventures.”

The Irish company intends meeting the receiver, PricewaterhouseCoopers, to establish what options it may have as a result of the situation.

“Blackrock will review the affected joint ventures with the receiver as soon as practicable, with a view to agreeing a future strategy in relation to each as appropriate, including consideration of any commercially attractive opportunities that may arise,” it said yesterday.

Each of its investments with Applecross are held through separately incorporated entities. The Scottish company managed the properties.

In its accounts for 2008, Blackrock cut 23 per cent off the value of its total property investments, reducing them to €340 million from €450 million previously.

In 2006, Blackrock invested €90 million in a joint venture with Applecross and a third party, Esk Properties, in the BBC Scotland building in Glasgow.

The following year, the pair did a €35 million deal to buy a college campus at Eksbank, 10 miles south of Edinburgh city centre. Blackrock put €6 million equity into the deal.

It also netted €21 million in 2007 from the sale of the old Edinburgh Fruit Market to a joint venture involving itself and Applecross.

Blackrock is a property investment offshoot of listed fruit importer Fyffes, which is a shareholder along with the fruit company’s founders, the McCann family.

Colin Cumberland and Graham Aggett established Applecross 30 years ago to cash in on what were then rising property markets in Edinburgh.