Blackrock International Land has established a 50:50 joint venture with Scottish property developer Applecross Properties to develop an 8.82-acre site in Edinburgh.
Blackrock is to sell the former Edinburgh fruit market and a number of adjacent properties to the new joint venture for £18.5 million (€27 million), thereby realising an initial profit of £1.5 million.
The company said it was intended that 70 per cent of the purchase price would be funded by bank borrowings and, as a consequence, Blackrock would release equity of £15.7 million, leaving a net investment in the joint venture of £2.8 million. Completion is to take place not later than December.
Blackrock, a spin-off from Fyffes quoted on the IEX and AIM since last year, said that outline planning consent had been obtained for more than 400 apartments on the site.
The full project, being managed by Applecross, is expected to have a gross development value of more than £80 million.
Blackrock already has a joint venture arrangement with Applecross to acquire BBC Scotland's 5.3-acre former broadcasting premises in Glasgow's west end for £18 million. This development has an anticipated gross development value of £60 million.
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