Property firm examines possibilities for boosting shareholder value

SHAREHOLDERS in the Irish-based international property development company, Blackrock International Land, were told yesterday all possibilities for improving shareholder value were being examined, in light of the negative effect on the firm’s portfolio from the economic downturn.

At the company’s AGM, management said the international property markets in which the company operates – namely Ireland, Britain and parts of continental Europe – had been “severely affected” by the economic downturn and the restriction on the availability of capital for investment in property.

“This has obviously constrained the scope and timing of Blackrock’s plans to develop its property business over the medium term. As previously indicated, it has also prompted the company to consider with its lenders any changes in its facilities that may be necessary... to take account of the present environment,” shareholders were told. It said those discussions were ongoing.

“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.

“In the meantime, Blackrock remains focused on maximising the rents from its portfolio, the majority of which is income-producing, while at the same time minimising its costs and outlays and adding value to its properties wherever possible.

“The board continues to examine all possibilities to improve the value of the group’s portfolio for the benefit of its shareholders and to place it in the best possible position when market conditions improve.”