Property developer Dunne settles action for €220m

Property developer Seán Dunne and investment specialist Kevin Warren have agreed a €220 million settlement in their High Court…

Property developer Seán Dunne and investment specialist Kevin Warren have agreed a €220 million settlement in their High Court case over the Whitewater shopping centre in Newbridge, Co Kildare. Una McCaffrey reports.

The two parties agreed yesterday to bridge their differences regarding the sale of Mr Dunne's 50 per cent stake in Whitewater to Mr Warren. The case was at the end of its second week and had promised to run for some time.

Under the settlement, Mr Warren will pay up to €220 million for the asset, which Mr Dunne will now willingly sell. The two sides expressed pleasure with yesterday's outcome, which allowed both to claim a sort of victory.

Mr Dunne said he had "mixed emotions" at letting his stake in Whitewater go.

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He described it as a "crown jewel" property, saying he would not have considered selling it at all if it had not been for his involvement with Jurys Doyle last year.

At around the same time as negotiating with Mr Warren about Whitewater last summer, Mr Dunne was buying two sites from Jurys for €240 million.

These purchases meant he needed to sell other assets. He said yesterday that if it had not been for the "irresistible opportunity" provided by Jurys Doyle last year, he probably would not have looked into disposing of his Whitewater stake at all. He paid tribute to his High Court legal team.

Mr Warren, of Warren Private Clients, said he was "delighted" with the conclusion of the case. He said he had "always intended" to pay about €200 million for the share in the retail development.

"We are confident that the investment will increase substantially in value over the next few years," Mr Warren added.

Mr Dunne had originally asked the court to declare that there was no sale contract between the two.

Mr Warren had, in return, asked the court to rule that there was a contract to sell the site on which Whitewater sits for €37.5 million and that it was binding. He wanted the court to ensure that Mr Dunne honoured what he saw as a legal deal.

In his evidence, Mr Dunne said this price just related to a site contract and that both parties had expected more money to change hands under a development agreement covering the buildings.

The settlement meant that the court, under Ms Justice Mary Finlay Geoghegan, did not reach the stage of deciding on any aspect of the matter.

The case terminated before Mr Warren's turn to give evidence arrived, following intense negotiations between the parties during the past few days.