Carl McCann, chairman of Blackrock International Land, yesterday defended the group's decision not to pay a dividend, saying that in the early stages of any property company's life it is more important to invest in the development of the group rather than return money to shareholders.

Speaking in response to repeated questions on the group's dividend policy at the annual general meeting in Dublin yesterday, Mr McCann said the company was trying to create value for shareholders by developing its property portfolio and as a result pushing the share price higher.

Since they were first listed on Dublin's IEX following the group's spin off from fruit company Fyffes in May last year, Blackrock shares are up more than 20 per cent.

Commenting on the current state of the business, Mr McCann said things were looking healthy and the group was on track to have €1 billion worth of property within five years. He acknowledged that the growth seen in the first year of business - as of the end of May, the company had amassed a portfolio worth €420 million - was quick, but said he saw no reason for a slowdown.

He said the group was in talks regarding several opportunities, which he hoped would come to fruition.

Asked whether the company, which is focused on Ireland, Britain and the Benelux countries, would consider taking advantage of the decline in the value of the dollar versus the euro to purchase assets in the US, Mr McCann said the company's expertise lay in Europe and that was where the focus would remain.

Mr McCann also dismissed concerns about a possible slowdown in the property market.