Irish property investor Blackrock International Land plc has entered into a new 50:50 joint venture to acquire approximately 300 acres of agricultural land on the south side of Edinburgh.

The purchase has been made in conjunction with Applecross Properties Limited and Esk Properties Limited in a continuation of the successful association established last year to develop two other major properties in Scotland.

The joint venture partners, Blackrock and Applecross/Esk, will contribute €3.5 million each toward the initial outlay of €7 million.

The vendor will be 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. The total consideration payable for the lands is not expected to require shareholder approval.

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The lands are strategically located some six miles south of Edinburgh city centre and benefit from excellent transportation links to the city centre and to the national roads network via the city by-pass. The current shortage of high quality sites in Edinburgh is set to continue as the city expands and it is anticipated that these lands will provide future development opportunities for a number of potential uses.

Commenting on the transaction, Blackrock Managing Director, Robert Knox, said:“We are pleased to have concluded the purchase of this important land holding close to Edinburgh in conjunction with Applecross and Esk. The property market remains strong in Scotland. The residential market has recovered after a slowdown in 2005 and we see further opportunities to develop our business there over time."

Blackrock and Applecross/Esk have previously entered into two joint ventures in Scotland.

The first was to acquire BBC Scotland’s 5.3 acre former broadcasting centre in Glasgow’s west end for €27 million. This mixed residential, hotel and leisure project is anticipated to have a gross development value in excess of €90 million.

The second has acquired the former Edinburgh Fruitmarket premises on 8.82 acres from Blackrock for €27.8 million. This project involves the construction of more than 400 apartment units with an anticipated gross development value in excess of €115 million.

(GK/SP)