The State-owned Dublin Docklands Development Authority (DDDA) last night emerged as equity partner with property developer Bernard McNamara in a €412 million deal to buy out the former Irish Glass Bottle site in Ringsend.
The two are behind the winning tender in a bid process for the shares of South Wharf, the listed company whose major asset is the landmark 24-acre site in Dublin 4. Mr McNamara is believed to own two-thirds of the vehicle used to conclude the deal, with the DDDA holding about one-third.
For tax reasons, the sale of the site will be executed by way of a scheme of arrangement for the transfer of shares in the company, the former Ardagh plc. Mr McNamara is highly acquisitive. His interests outside property include stakes in the Superquinn supermarket chain and Champion Sports.
Shareholders in South Wharf, including businessman Paul Coulson, and the Dublin Port Company will be the beneficiaries of the deal, which is subject to Mr McNamara and the DDDA putting financing in place.
South Wharf will receive 66.4 per cent of the proceeds, some €273.56 million before transaction and legal fees and other costs.
For its part, Dublin Port will receive €138.43 million in respect of its entitlement to 33.6 per cent of the sale proceeds.
The deal represents a coup for Mr Coulson, who has a personal stake of 3.4 per cent in South Wharf and whose company Yeoman International Holdings owns 23.19 per cent. Other big shareholders include Rowan Nominees, which is owner of a 29.75 per cent stake.
Rowan's ultimate ownership is unclear. In addition, clients of Davy Stockbrokers own 4 per cent.
In some estimates, South Wharf's fees from the transaction could be as high as €15 million.
Investors will receive their money through the redemption of their shares, which closed 30 cent weaker last night at €7.
The division of the sale proceeds reflects the terms of an out of court resolution of a long-running legal dispute between South Wharf and Dublin Port over their interests in the site.
The conflict between the two dated to the cessation of production at the Ringsend glass plant owned by the Irish Glass Bottle Company, a precursor to Ardagh. South Wharf lost a High Court case in 2005 that stemmed from Dublin Port Company's refusal to allow it to change the use of the site from manufacturing.
