Developer in action against family over development profits
Man fears steps being taken to deprive him of his alleged right to half-share of profits
Greg Kavanagh, of Arklow, Co Wicklow, claims relations with Luke Keily significantly deteriorated earlier this year and he fears steps may be taken that will prejudice him while he is trying to regularise his shareholding in two companies. Photograph: Michaela Rehle/Reuters
A property developer who says he fears that steps are being taken to deprive him of his alleged right to a half-share of profits from certain development projects in Dublin has brought proceedings at the Commercial Court.
Greg Kavanagh claims he agreed in 2013 with Luke Keily, of Brefini Road, Sandycove, Co Dublin, that members of the Keily family could participate in various development projects with him on certain terms. Mr Keily and his family are in the healthcare industry and had no experience in property development, he said.
Mr Kavanagh, of Arklow, Co Wicklow, claims relations with Mr Keily significantly deteriorated earlier this year and he fears steps may be taken that will prejudice him while he is trying to regularise his shareholding in two companies.
His action is against Luke Keily; Sibeal Keily, Kenston Drive, Foxrock; Robert Keily, Brighton Road, Foxrock; Tony Keily, Westminister Road, Foxrock; and two companies: Mustardside Ltd and Bindford Ltd, respectively with registered offices at Grand Canal Street and City Quay, Dublin 2.
The premise behind each was that Luke Keily and/or his family would ultimately end up with a 50 per cent shareholding in each development company and Mr Kavanagh would hold the other 50 per cent.
Mr Kavanagh claims he was to identify the development project and site, manage the purchase, secure planning permission and manage the development and construction. The Keilys would advance the capital or bulk of it.
He claims Mustardside bought lands for about €2.5 million at Oatlands, Stillorgan Road, for development in late 2013. The purchase was financed by Colsen, a company owned and controlled by the Keily family.
Mr Kavanagh claims he was to provide €1 million in development finance in consideration for a half shareholding in Mustardside.
He said he later used that €1 million to finance a €930,000 purchase of land at Cherrygarth necessary for development of the Oatlands site, on the understanding he would get the half shareholding in Mustardside.
Mr Kavanagh claims Bindford bought lands at Cross Guns Bridge, Phibsboro, for about €800,000 in June 2013, financed via €100,000 from himself and €700,000 from the Keilys.
He understood an 87.5 per cent shareholding is held by Sibeal Keily in Bindford Ltd on trust for the Keily family.