Blackrock chiefs seek prompt meeting on insolvent partner

EXECUTIVES AT property investor Blackrock International Land are hoping to meet the administrator of the company’s insolvent Scottish partner within the next week.

Dublin-listed Blackrock is a joint-venture partner in five Scottish projects with Edinburgh-based player Applecross, whose banks recently appointed an administrator in a bid to recover a £70 million (€79.7 million) loan.

Speaking after its annual general meeting (agm) yesterday, Blackrock chairman Carl McCann, and chief executive Robert Knox said they hoped to meet administrator PricewaterhouseCoopers “within the next week”.

Administrators are appointed to companies under Scottish law with a view to establishing whether they can be saved. The emphasis on the process is on getting the best value for creditors.

Blackrock’s statement last week said it would consider any commercial opportunities that might result from the process. Yesterday, Mr McCann said it was too early in the process to say what those might be. “We don’t want to second guess it at this stage,” he said. “The joint ventures are still there, we’ve just got a different partner.”

Each of the five investments are held by separate joint venture companies. Blackrock wrote down the value of the properties involved in its 2008 results. As a result, it does not believe Applecross’s problems will leave it with a financial loss.

In a statement issued at the meeting, the company told shareholders that the international property slump has limited the scope and timing of Blackrock’s plans to develop its business over the medium term.

“Outside of the property area, there are early signs and expectations of improvement in economic sentiment and activity, particularly in the US,” the statement said. “The significant efforts being made by the relevant governments and authorities to stimulate the euro and sterling areas should also begin to show results.”

It added that real estate firms’ share prices had improved sharply on the London Stock Exchange over the last three months.

“An upturn in economic activity and an increase in the supply of capital, leading to increases in occupier and investor demand, will be key drivers of recovery in property values,” Blackrock said.

In the meantime, the company said it intended to maximise income from rents. Mr Knox told the meeting that it has increased rental income from €13 million a year to €13.7 million.

Blackrock has properties in Ireland, Britain and the continent. Its interests include the Gateway Business Park in Dublin.