Settlement talks continue over Whitewater deal

Settlement talks were continuing last night between lawyers for developer Sean Dunne and financier Kevin Warren over the disputed sale of Mr Dunne's interest in the Whitewater shopping centre in Newbridge.

The case went into its seventh day yesterday after talks on Wednesday night failed to reach a settlement. Sources said last night that the two sides were moving in the direction of Mr Warren making an additional payment to reflect the value of the development on the site.

Mr Warren claims to have a contract to buy Mr Dunne's 50 per cent of the site on which the shopping centre sits for €37.5 million.

Mr Dunne claims the site and associated development are worth around €200 million.

In the High Court yesterday, the transaction at the centre of the dispute was described as "highly unusual" by a property expert.

Giving evidence on the seventh day of Mr Dunne's action against Mr Warren over the purported sale of his stake in the shopping centre, Stuart Harrington, a chartered surveyor, said he could not recall coming across a deal like this one before.

He said a forward funding transaction, where developments are partially sold on, though not yet constructed, is nothing new and office blocks were among projects usually funded in this manner.

However, this particular deal was complicated because it involved a shopping centre. Mr Harrington told Dermot Gleeson SC, for Mr Warren, that this particular transaction was "highly unusual".

At the close of Mr Harrington's evidence yesterday, which concluded the evidence on behalf of Mr Dunne, Mr Gleeson asked the judge to dismiss the claim. He argued there was no evidence to support Mr Dunne's claim.

Ms Justice Mary Finlay Geoghegan will continue hearing that application when the action resumes today.

In his proceedings, Mr Dunne, of Merrion Square, Dublin, claims the purported sale of his stake on July 21st, 2005 to Mr Warren, of Northumberland Road, Dublin is in breach of an agreement that the sale would not be completed until a development agreement had been executed by both parties.

Mr Dunne claims it was understood by both parties that the €37.5 million figure was only part of an overall figure to be arrived at under a development agreement to be negotiated by the two sides.

Mr Dunne, who recently purchased Jury's Hotel and other sites in Ballsbridge, Dublink, is seeking a declaration from the court that no binding agreement was reached between himself and Mr Warren for the sale of his 50 per cent stake. Mr Warren has denied Mr Dunne's claims and claims Mr Dunne agreed to sell his stake for €37.5 million and that a €100 deposit paid on August 31st, 2005 secured the deal.

Mr Warren also claims there is a binding contract between Mr Dunne and Mr Warren for the sale of the former's stake, which alleged contract was agreed in a written memorandum of agreement made on July 21st, 2005.

He contends Mr Dunne has refused to complete the sale and is therefore acting in breach of contract.

The court has heard Mr Dunne was the owner of 50 per cent of the lands at Moorfield and Kilbelin in Newbridge, Co Kildare where the Whitewater centre is now situated. Sean Mulryan was the owner of the other 50 per cent interest.