Marketing begins for sale of controversial site

MARKETING of the controversial Ringsend site that houses the former Irish Glass Bottle Company is to start at the end of the month.

This follows an attempt by South Wharf, led by businessman Paul Coulson, to buy the site from Dublin Port for €25 million under a planning loophole.

The 25-acre site is worth an estimated €350m, given its location close to Dublin’s city centre, Dublin Port chief executive Enda Connellan said.

Speaking at the launch of the group’s 2005 annual report yesterday, Mr Connellan defended the action of the port to protect the interests of the State.

“Dublin Port Company moved rapidly and decisively to protect the interests of the State,” he said.

As a result the 25-acre site is expected to fetch close to €350m, according to Mr Connellan.

Of that, Dublin Port will get 33.6% or close to €117m if the land goes for the estimated €350m.

Under the terms of the deal neither party to the sale can be involved in any future development of the site, once the sale has been completed.

“We’re not doing a joint venture with Paul (Coulson), we’re jointly going to sell the site,” he said.

On the merits of the overall deal given Dublin Port actually owns the site, Mr Connellan said: “The best way I can put it is that we have come to an agreement that we are very satisfied with.”

He refused to comment on the failure of the IDA to alert it to the fact that it had been rumbled by the same loophole when land it had leased to a company was bought for a fraction of its worth.

Under this new agreement third parties will tender for the site.

The land will not be sold for less than €250m and some believe it could be worth double that value.

Dublin Port has agreed to convey its freehold title in the Ringsend site to a subsidiary of South Wharf on completion of a deal.

The remainder will be distributed to South Wharf shareholders in consideration for the cancellation of their shares. The company’s listing would then be cancelled.