Blackrock in joint venture purchase of offices

The Fyffes property spin-off Blackrock International Land has entered a joint venture to purchase a Brussels office building for €41.7 million.

Blackrock's partner on the transaction is Belgian-based property investment company EuroCapital, with which it already formed a joint venture to invest in a warehouse and office development in Brussels last year.

Bank funding has been arranged for 70 per cent of the outlay.

The eight-storey Olympiades building is located in the Evere district of Brussels and comprises 43,000 sq m (140,000 sq ft) of offices as well as basement storage and parking spaces.

The building carries a two-year rental guarantee and one floor has already been let for more than the guaranteed rate.

Blackrock said yesterday that the projected initial yield on the total outlay was expected to exceed 6.2 per cent.

Blackrock's chairman, Carl McCann, said: "We are pleased to have concluded the purchase of this attractive and strategically-located office building in Brussels. This transaction brings investment expenditure by the group this year to almost €60 million, which is in line with the target levels that we have already outlined."

He said that Blackrock would continue to seek investment opportunities in Ireland, Britain and continental Europe.