Mediation fails to resolve Dunnes, Point Village impasse

MEDIATION talks have failed to resolve a dispute over the alleged failure of Dunnes Stores to complete an agreement to become anchor tenant at the Point Village development in Dublin’s docklands, the Commercial Court was told yesterday.

Businessman Harry Crosbie has claimed Dunne’s alleged failure is jeopardising the continued financing of the project and he is now proceeding with his application for an order requiring Dunnes to pay e23 million under the alleged agreement, Mr Justice Peter Kelly was told.

The judge listed that application for hearing on April 2 next. The proceedings were admitted to the Commercial Court early last month, but were adjourned to facilitate mediation.

Point Village Development Ltd claims Dunnes had entered into an agreement with it in February last year whereby the retail chain would pay e46 million to become the anchor tenant in the scheme, part of the already completed O2 venue.

The entire development is to cost around e850m and will include a shopping centre, a cineplex, offices, a hotel, apartments and a public square. More than 50% of the work, including e23m on the Point Village, has been completed.

In an affidavit, Mr Crosbie said he reached agreement with his bank to borrow e51m to fund the works for the anchor tenancy, on the basis of the agreement with Dunnes, but the alleged failure of the retailer to complete the deal was jeopardising the financing of other elements of the Point Village scheme.