Action against Treasury begins

An Allied Irish Banks trust company has brought High Court proceedings against property development company Treasury Holdings aimed at clearing the way for the proposed €64 million sale of the majority shareholding in the Northside Shopping Centre in Coolock, Dublin.

The action by BNY Trust Company (Ireland) Ltd and Ark Life Assurance Company Ltd against Treasury Holdings Ltd opened before Mr Justice Frank Clarke yesterday in the Commercial Court, the commercial division of the High Court, and continues today.

Outlining the case, Mr Maurice Collins SC, for BNY and Ark Life, said the proceedings, while appearing quite complex, were essentially about interpretation of certain clauses of a co-ownership agreement relating to the Northside Shopping Centre (NSC).

His clients had agreed to sell their interest but Treasury was alleging the sale would breach a 1998 co-ownership agreement, counsel said. The plaintiffs wished the court to direct Treasury to withdraw that claim.

In the action, BNY claims it is the beneficial owner of 78.6 per cent of the Northside shopping centre premises and THL is the beneficial owner of 21.4 per cent of the property, having purchased the interest of Mr Peter Conlan.

In November 2006, the plaintiffs claim that N1 Property Developments made an offer of €81,750,000 million for the freehold interest in the shopping centre. In line with the 1998 agreement, an offer under which N1 would buy Mr Conlan's share for €18,050,000 was also made on February 14th, 2007.