Blackrock expects 6% asset value rise

Fyffes spin-off Blackrock International Land expects the value of its assets to increase by at least 6 per cent by the end of 2006.

The company issued a trading statement yesterday ahead of its first year-end on December 31st, 2006.

It said: "Based on the latest estimates for the period, the group anticipates reporting an increase in its net asset value per share in excess of 6 per cent over the 35.5 cent that pertained on commencement of operations on May 11th, 2006.

"The estimated out-turn takes into account projected translation rates and initial indications of period-end property values."

During the seven-month period, Blackrock spent €142 million on investment and development properties.

The expenditure brought its gross property assets to almost €340 million, an increase of more than 70 per cent.

It said yesterday that it expected net debt at the end of the period to be €90 million.

Blackrock was established in May when Fyffes shareholders voted to spin off the fruit importer's property portfolio into a separate entity. It paid €83 million for 40 per cent of the company while its equity holders got the remaining 60 per cent.

The company controls Fyffes' original property portfolio and has been expanding this since last summer's split. In September, it pledged that it would spend €200 million on buying properties over the next two years at a rate of €100 million every 12 months.

It has been buying properties in both Ireland and the UK. Earlier this year, it emerged that the company is part of a consortium that is planning to invest €90 million in redeveloping BBC Scotland's former headquarters in Glasgow's West End. The local partners in the deal are Applecross Properties and Esk Properties.