Property investment group sees its assets fall by €30m

PROPERTY investment group Balmoral International Land saw the value of its net assets fall further last year, albeit at a much slower pace than the previous year.

The Fyffes property spin-off — formerly known as Blackrock International Land — said yesterday the value of its group net assets fell by €30.3 million to €30m in 2010, “due to further reductions in valuations”.

In comparison, in 2009, Balmoral’s net asset value fell by €89.8m, to €60.3m. The 2010 figures also showed a pre-tax loss for the company of €29.4m, compared to a loss of €105.4m in 2009. The loss per share was reduced from 15.39c to 5.17c and net rental and related income increased from €13.6m to €14.7m.

“The continuing difficult economic conditions resulted in further reductions in property values in 2010, particularly in Ireland, although the rate of decline slowed significantly. Balmoral continues to closely manage its portfolio of assets to maximise income, minimise cost and optimise values in anticipation of a recovery,” chairman Carl McCann said.

Management added that the company undertook only essential investment expenditure last year and it continued to benefit from “a robust rental income stream”, adding that no defaults arose among lessees during the 12 months.

The company also managed to dispose of two properties — an industrial facility in Dundalk, for €2.9m and a Milton Keynes-based office development, for €3.85m — at prices at or in excess of their book value. The aforementioned trades strengthened Balmoral’s cash balance, helping to result in a net balance at year’s end of €10.7m.

“Toward the end of the year, agents began to report some signs of recovery in activity in certain market segments and geographies. With a steadying economy and very little new construction taking place, it may not be unreasonable to anticipate that a turn in market conditions may be approaching,” management added.