The McCann family once synonymous with the Fyffes increased its stake in Balmoral International Land to above the 60 per cent level last year, after the property company bought back some shares from small legacy investors at a time when its assets outperformed the wider real-estate market.
The company said in its latest annual report that it spent €2.57 million buying back small lots of stock from 1,344 shareholders. This served to increase to increase the combined holdings of investment vehicles controlled by the McCanns to 61.4 per cent from 58.6 per cent.
The value of its investment properties edged up to €138.1 million from €137.2 million at the end of 2022, underpinned by fact that industrial and warehouse assets, which account for 68 per cent of its holdings, largely held their own in the Republic of Ireland and the UK last year as the wider real-state market declined.
Balmoral’s recording of a €900,000 writedown on the value of Irish assets was offset by upward movement of a similar value in its UK portfolio. The company’s debt dipped to €33.3 million on the year from €35 million, though its net cash position halved to €3.8 million.
The balance sheet had been underpinned by €32.6 million of proceeds being generated in 2022 from the sales of an industrial building and offices in Milton Keynes in the UK and an industrial property in Dublin.
“While commentators are forecasting a reduction in interest rates later this year, their view of the commercial property market remains negative. While it seems unlikely that our assets will increase in value during 2024, the downside risk is hopefully also limited,” said Carl McCann, the company’s chairman.
Prime Dublin industrial and logistics rents increased by 13 per cent last year, according to CBRE, as demand for space continued to climb even as other segments of the commercial property market – such as offices and retail – remained under the cosh. The value of industrial and logistics investment deals amounted to €520 million, some 60 per cent above the 10-year average level of activity.
The company was originally named Blackrock International Land when it was spun out by Fyffes in 2006. It was delisted in 2011 following a slump in its share price during the property crash, but continues to have thousands of legacy shareholders that have remained on board since the stock market exit.
The McCann family sold their decades-old shares in Fyffes in 2017 to Japanese conglomerate Sumitomo. The Tokyo-based firm subsequently sold the 30 per cent interest in Balmoral it inherited to the McCanns.
Mr McCann is also executive chairman of Dole Plc, the Irish-based but New York-listed fresh produce company created in 2021 through the merger of Dole Foods with former Total Produce. Dole and Fyffes are among Balmoral’s main tenants.
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