Blackrock International Land has agreed to buy an office and warehouse facility at Milton Keynes in the UK for €12.25 million, bringing its property investments this year to more than €76 million.

The facility comprises two separate buildings on a six-acre site just north of Milton Keynes and adjacent to the M1, linking London in the south of England with Yorkshire in the north.

The properties are let to established tenants and have development potential.

The deal follows the purchase of three buildings in the city for €37.5 million last November.

According to Blackrock, which was spun off from the fruit group Fyffes last year, Milton Keynes is among the fastest-growing cities in Europe, with its strategic location midway between London and Birmingham generating significant demand for both office and warehouse accommodation.

"This purchase extends the scope of our activities in Milton Keynes, where we see the potential for substantial growth," said Carl McCann, the company's chairman.

The latest addition to Blackrock's €442 million property portfolio comprises a 65,300 sq ft warehouse building and a separate 24,200 sq ft of offices.

The warehouse is let to a major UK furniture retailer until 2016.

The office building is currently rented out to an international motor manufacturer until 2008. That company is believed to be keen to extend its lease on the property.

Analysts welcomed the most recent purchases, particularly the development opportunity, and were quick to point out the potential for strong growth in rental yields over the next few years.

The current rental yield is 6.85 per cent.