Blackrock International Land, the property company spun off from Fyffes, has formed a 50-50 joint venture to develop its nine-acre Chesser Avenue site in Edinburgh.
Scottish developer Applecross Properties is Blackrock's partner in the deal.
A new company will buy the property - the former Edinburgh Fruit Market - from Blackrock for €18.5m, giving Blackrock an initial profit of €1.5m.
Outline planning permission has already been obtained for more than 400 apartments on the site.
