Developer Sean Dunne is not expected to make payment today for the site he has agreed to buy from Jurys Doyle at Ballsbridge in Dublin.

Mr Dunne had been due to pay the balance of €260 million for the five-acre property today. It is understood that his solicitors, Arthur Cox, yesterday wrote to lawyers representing Jurys Doyle to explain that he would not pay for the site as planned.

The reasons for the non-payment were not clear last night, although there were suggestions that Mr Dunne had pointed to some financing delays.

Jurys Doyle declined to comment on the matter last night, but it is thought the company had no concerns that the money would not eventually be paid.

The company may be required to make a statement on the matter to the Stock Exchange today.

Any delay or non-payment will certainly have financial consequences for Mr Dunne. His contract to buy the Ballsbridge site is thought to include a penalty clause that could see him being charged interest at 1 per cent per month on the amount he has not paid. This could lead to a monthly penalty of €2 million.

The development puts a new complexion on the takeover process at Jurys. Informed sources said last week that the Doyle-led consortium would not launch a firm bid until Mr Dunne's €260 million was paid.

Mr Dunne is meanwhile said to be interested in bidding for Jurys himself and has been linked with private equity house, Orion, as a possible backer.