BLACKROCK INTERNATIONAL Land, the Dublin-based property company spun off from fruit importer Fyffes, has warned that the value of its assets may not increase this year as the economic slowdown affects property prices.

In a statement released ahead of its annual general meeting in Dublin yesterday, the company said that "it seems prudent at this stage not to assume any growth in net asset value per share for the full year". Blackrock said that the increasing strength of the euro against sterling would reduce its net asset value by 0.5 cent per share for the first half of this year.

Excluding currency effects and pending property valuations at the end of this month, the company is targeting unchanged net asset value per share for the first half of the year.

The company said that, while the value of some of its investment properties has seen some decline, progress has been made on the property development side.

Blackrock said that it had a robust portfolio that is well diversified geographically and by sector. The company said that it was disappointing that work undertaken to develop its portfolio had not yet been reflected in an overall increase in values.

The company said that it continued to explore a substantial number of investment opportunities, but had not concluded any significant transactions so far this year.

Chairman Carl McCann told shareholders that the company was in a tougher market this year and had to be more demanding on returns and the risks it was prepared to take.

Almost 75 per cent of Blackrock's bank loans of €199 million are borrowed on variable interest rates.

The company said it had no plans to fix more of its loans. It has gross assets worth €440 million.

Blackrock, which is listed on the IEX market in Dublin, dropped 0.8 per cent to 24.3 cent, giving it a market value of €142 million. It has fallen 27 per cent this year.