Blackrock International Land has announced that it has formed a new joint venture with Applecross Properties Limited to develop its 8.82 acre site at Chesser Avenue, Edinburgh.
It is anticipated that the project will have a gross development value in excess of €117m.
Blackrock and Applecross established a new body which has entered into an unconditional contract to purchase the former Edinburgh Fruit Market and a number of adjacent properties from Blackrock for €27m.
A statement from Blackrock read: "It is intended that 70% of the purchase consideration will be funded by bank borrowings. As a consequence, Blackrock will release equity of €23.1m leaving a net investment in the joint venture of €4.1m."
The Edinburgh Fruit Market premises were vacated in February of this year following the relocation of Total Produce plc to its new depot at Sighthill.
The adjacent properties had been acquired separately over several years. The development site is one of the last major residential development opportunities within the area, in close proximity to the west end of Edinburgh city.
Outline planning consent has already been obtained for more than 400 apartments on the site and a detailed planning application will be submitted shortly.
With construction expected to start in early 2008, the full project is anticipated to have a gross development value in excess of €117.6m.