TOT.L Regulatory News (TOT)

2 Oct 2007 07:01

Blackrock International Land PLC02 October 2007 Blackrock International Land plc Stock Exchange Announcement Blackrock and Total Produce form JV to acquire Dublin lands Blackrock International Land is pleased to announce that it has formed a new 50:50 joint venture company with Total Produce plc which has agreed to acquire 135acres of land in Dublin for a total outlay, including costs, of €25 million. The lands are located at The Ward in north Co. Dublin, close to the new N2motorway which links the M50 interchange at Finglas to Ashbourne. Just over 36 acres of the lands are zoned for agri-business use, 20 acres ofwhich have been targeted for the initial development of new facilities for TotalProduce, including replacement premises for its existing operations in centralDublin. Under the joint venture agreement, Total Produce has an option toacquire these 20 acres at cost, such option to be exercised during a maximumperiod of ten years from completion of the transaction. The remaining 99 acres, which also adjoin Blackrock's existing 120 acres holdingat Corrstown, County Dublin, are well placed to take advantage of thesignificant development expected to take place in this area of north Dublin overthe next few years. Blackrock's share of the acquisition cost is €12.5million. Threerepresentatives from each company have been appointed to the board of the jointventure company, including Robert Knox, managing director of Blackrock and RoryByrne, chief executive of Total Produce. The vendors of the lands are subsidiaries of Balkan Investment Company, acompany controlled by Neil McCann, which owns 6.38% of the share capital ofBlackrock and 10.6% of the share capital of Total Produce. The joint ventureagreement and the agreements for the purchase of the lands have been negotiatedat arm's length. The joint venture company and the vendors engaged their ownseparate property advisors. Each of the parties also engaged their own separatelegal advisors. Commenting on the transaction, Blackrock's managing director, Robert Knox, said: "This purchase gives Blackrock a direct or indirect interest in more than 255acres in a rapidly developing part of Dublin. A major new road network hasalready been constructed in the area, including the new N2 motorway, and furtherextensive transport infrastructure projects are underway or planned. Substantialcapital investment is also scheduled for the area in the near term, includingthe new prison facilities at Thornton Hall and a new terminal at Dublin airport.The acquisition will also accelerate the release of Blackrock's valuableredevelopment properties in Dublin and provide the Group with the opportunity tooptimise the usage and value of various other assets in its portfolio." Blackrock International Land plc2 October 2007 For further information, please contact: Ivan Murphy, Davy Corporate FinanceTel. +353 1 6796363 Brian Bell, WHPRTel: +353 1 6690030 This information is provided by RNS The company news service from the London Stock Exchange