BERLAND Homes, the Dublin house builder, is to be wound up following the settlement of the long running dispute between its two major shareholders. Dublin builder Mr Sean Dunne yesterday settled his action against a group of investors led by the partners in Davy stockbrokers.
The proceeds of the disposal will be distributed to the shareholders on the basis of their shareholdings. Mr Dunne and two associated investment companies own 51.5 per cent of Berland following the settlement, while the vehicle used by the other investors, Mulroy, owns 48.5 per cent. In documents lodged in the High Court Mr Dunne claimed to own 50 per cent of the company and appears to have increased his shareholding by 1.5 per cent after the settlement.
Berland has developed 70 acres of land at St Helens in the Dublin suburb of Booterstown over the last five years. The undeveloped portion of the land has a market value of between £11 million and £14 million and is divided into four sites. This week the company was granted planning permission for a 150 bedroom hotel on one of the sites. The company is also seeking planning permission for approximately 300 apartments on the other large site.
It is understood that shareholder loans of around £5 million and a portion of accrued interest will be discharged before the proceeds of the sale are distributed. The legal fees of both sides will also be met out of the proceeds of the sale.
Sources close to the agreement said last night that the liquidation of Berland could leave as much as £6 million to be distributed between Mr Dunne and Mulroy. Under the terms of the settlement Mr Dunne will also take the two smaller sites in the St Helen's development. A small housing scheme and an apartment development are planned for these sites.
Mulroy is owned by senior Davy executives and a number of the broker's major clients. The Davy executives include Mr Brian Davy. Mr Kyran McLoughlin, Mr David Shubotham and Mr Tony Garry. Davy clients who invested in Berland include the businessmen Mr Martin Naughton and Mr Lochlann Quinn, owners of the Glen Dimplex group. Mr Paul Coulson of the CLF Yeoman group is also an investor.
Mr Dunne and Mulroy disagreed at the end of 1993 when the third shareholder in Berland, the Merchant Navy Officers' Pension Fund, decided to sell its 25 per cent share holding. Mr Dunne claimed that, under the terms of the Berland shareholders' agreement, the stake should have been sold to both remaining shareholders on pro rata basis. Instead, the shares were bought by Mulroy.
At the end of 1994, Mr Dunne launched legal action against Mulroy.
He claimed that he was entitled to a portion of the shareholding held by the pension fund.
Mr Dunne subsequently claimed that he was an oppressed minority after Mulroy sought repayment of the £4.5 million in loans that it had made to Berland along with the pension fund.
Mr Dunne claimed the loans were only due for repayment on the completion of the joint venture.
The two sides commenced discussions on settlement terms on Tuesday morning when the case was due to proceed in the High Court.
The case had been scheduled to last four weeks.
