A long-running dispute between Dublin Port and South Wharf over a 25-acre Docklands site looks set to be resolved after the companies agreed to put the land up for sale to a third party for at least €250 million and to abandon litigation.
Under the conditional settlement, third parties would be invited in September to tender to buy the site in Ringsend by acquiring all the shares of publicly listed South Wharf, formerly known as Ardagh Plc.
Dublin Port Company will receive 33.6 per cent of the proceeds and South Wharf shareholders will share the remainder, excluding transaction and legal costs estimated at €15 million.
Conflict between the two companies arose a number of years ago after the Irish Glass Bottle Company, a precursor of Ardagh, ceased production on the site it leased in Ringsend. At the start of 2005, South Wharf lost a High Court case that stemmed from Dublin Port Company's refusal to allow it to change the use of its site from manufacturing and warehousing.
An about-face came in April of last year when South Wharf said it wanted to join with Dublin Port Company to redevelop the property, which had been rezoned to permit commercial, residential and retail use.
South Wharf then attempted to force Dublin Port to sell the site under a specific legal loophole relating to State-owned lands for as little as €750,000. South Wharf spent €1.4 million last year on a "property development investigation" into the site, with the money spent on consultation with architects, planning experts and other professionals.
The Dublin Port Company disputed South Wharf's right to buy the site and the disagreement between the two companies was due to be heard by the Commercial Court in July.
"Both parties have conditionally agreed to settle the outstanding litigation between them in relation to the Ringsend site," the companies said in a statement last night.
The acquisition of South Wharf needs the approval of the company's shareholders under a scheme of arrangement.
If the purchase is completed, cash from the sale will be distributed to shareholders as consideration for the cancellation of their South Wharf shares. South Wharf and Dublin Port have agreed that none of their directors will take part in the tender process or the subsequent redevelopment of the Ringsend site. Jones Lang LaSalle and Hamilton Osborne King will act as property agents during the sale of the site, while Davy Corporate Finance will advise South Wharf on the transaction.
