Blackrock-led joint venture buys Scottish site

Irish property investor Blackrock International Land said it has entered a joint venture to buy about 300 acres of farm land on the south side of Edinburgh for an initial EUR 7 mln.

Blackrock will pay half of initial investment while partners Applecross Properties and Esk Properties will pay the balance. The vendor is entitled to receive additional consideration over time, equal to 50% of the open market value of any lands for which detailed planning consents are received. Blackrock noted the lack of high-quality sites in Edinburgh and said it anticipated the acquired property could be used for a number of potential development opportunities.

'The property market remains strong in Scotland,' Blackrock managing director Robert Knox said in a statement. 'The residential market has recovered after a slowdown in 2005 and we see further opportunities to develop our business there over time.'

This is not the first time Blackrock, Applecross and Esk have worked together. Last year, a joint venture of the three companies acquired BBC Scotland's 5.3-acre former broadcasting centre in Glasgow for EUR 27 mln. That mixed-use residential, hotel and leisure project is expected to have a gross development value of over EUR 90 mln. Another partnership between the three companies bought the 8.8-acre Edinburgh Fruitmarket from Blackrock for EUR 27.8 mln. That 400-unit apartment building is expected to generate a gross development value in excess of EUR 115 mln.