Blackrock, the property company spin-off from Fyffes, has made its first property investment in continental Europe.

It has acquired 90 per cent of a company which owns a substantial warehouse and office portfolio in Brussels in Belgium. The acquisition was made through its subsidiary Blackrock Land Continental. The other 10 per cent will be held by EuroCapital Property Group, a local property investment company.

Blackrock said the deal, including costs, was worth around €19.5 million.

The properties are located in the Zaventem South business and semi-industrial zone close to Brussels airport and comprise 168,000sq ft of warehouse distribution facilities and 80,000sq ft office buildings. The portfolio is 70 per cent let to strong covenants and, as part of the transaction, the vendor is providing a two-year rental guarantee in respect of the vacant space.

The properties are expected to generate annual income of more than €1.7 million, while the portfolio will provide a net initial yield of more than 8.7 per cent.

This deal brings total investment by the company since its listing in May to €58 million.