Fyffes’ property development company backs NAMA to have a positive effect on economy

BLACKROCK Land, the property development company spin off from Fyffes, said the proposed National Asset Management Agency (NAMA) will have a positive impact on the economy.

This comes as the company said its markets remain difficult and have not functioned normally during the first six months of this year.

It said the few transactions there have taken place have been at prices that do not reflect fair value and the board has not commissioned independent valuations of the group’s portfolio for the interim financial statements.

Blackrock International Land chairman Carl McCann said: “While international credit markets are showing many signs of improvement, the Irish economy awaits the impact of the significant amount of new capital that will flow from the ECB following the implementation of the proposed NAMA structure. This new capital should positively affect the direction of the economy, increase employment and lift demand for property.

“The economic stimulus measures that have been introduced in Europe and the US should also have a positive impact on the commercial property sector in due course.”

Mr McCann said the group’s priorities are to maximise income and reduce costs in anticipation of opportunities when conditions improve.

Net assets per share at 30 June 2009 were €0.2507 compared with €0.2571 at 31 December 2008.

Blackrock said it is discussing its loan facilities with lenders to secure satisfactory arrangements.