Blackrock International writes down value of Irish assets to €94m

PROPERTY group Blackrock International Land wrote down the value ofassets this year, but said the rate of decline in property valuations has slowed significantly.

The company’s Irish portfolio dropped in value from €101.2 million on January 1 to €94.5m by the end of June, due to a €4.4m value adjustment and disposals of €2.9m.

In Britain its portfolio saw disposals of €3.8 million and it increased slightly in value.

The property company reported a pre-tax loss of €7.9m for the first six months of the year, compared with a €3.6m loss a year earlier.

It said its net assets per share fell to 9.2 cent in the first half, compared to 10.3 cent on December 31.

At the operating income level, the group achieved an improved result for the first six months compared with the same period last year as a result of reductions in finance costs and administration expenses.

Blackrock International Land chairman Carl McCann said: “We were pleased to complete two disposals during the first six months, both on satisfactory terms. Across the portfolio, the rate of decline in valuations slowed significantly in the period. The board continues to focus on prudent management of its properties and finances to place the company in the best possible position when market conditions improve.”

The disposals were of an industrial facility at the Xerox complex in Dundalk and an office building in Milton Keynes generating cash of €6.7m for the group.

The company said that, on the planning front, it is making good progress in relation to several of its development properties, especially in Scotland.

Blackrock recorded gross rental income of €8.4m, compared with €8.6m in 2009.

Property outgoings were €1.6m, resulting in net rental income of €6.8m for the period.

Over the six month period, Blackrock also acquired the remaining 50% of the Drum Estate in Edinburgh from the administrator of Applecross Properties.