Smyth would sell Cherrywood to Carroll if approached

Dunloe Ewart chairman, Mr Noel Smyth, has said that he would be willing to sell the company's joint-venture Cherrywood development to dissident shareholder Mr Liam Carroll if an approach was made.

The disclosure came as Dunloe and joint-venture partner British Land announced the sale of the 400-acre Cherrywood lands in south Dublin. The sale, which commentators believe could raise €120 million for the two companies, is being made upon the request of British Land.

It comes less than two weeks after Mr Carroll and fellow rebel shareholders blocked the Dunloe board's attempt to purchase British Land's stake for €63.85 million.

Mr Carroll holds 28.5 per cent of Dunloe, while other dissident shareholders, Mr Dermot Desmond and Mr Phil Monahan, hold about 9 per cent between them.

"If they want to buy it, I will be quite happy to sell it to them," said Mr Smyth yesterday, adding that he did not have a "personal problem" with such an arrangement.

He said that it was "regrettable" that Dunloe's attempt to buy the property had been unsuccessful, but that his priority was on bringing money into the company and increasing shareholder value.

"We've got to do the best for the company no matter who buys it," said Mr Smyth, who claims to have had no contact whatsoever with the dissident shareholders.

"They're well capable of expressing their views to us in whatever way they wish," said Mr Smyth.

Since Mr Carroll, Mr Monahan or Mr Desmond would be legally viewed as "connected parties" in the Cherrywood sale, a move for them to purchase would have to be approved by Dunloe shareholders.

Dunloe's stake in the Cherrywood development accounts for about 40 per cent of the company's assets. Plans for the lands include business, leisure and residential construction.

Mr Smyth said that any potential buyer would need "deep pockets". He acknowledged however that a price tag of €127 million - double that offered by Dunloe for a 50 per cent stake - would be "chunky" in the current market.

"The suburban office market is not in the best shape," he said.

My Smyth said that buying the property is "the easy bit", with the infrastructural development required at the site likely to present greater challenges.

Even with this, however, it is thought that the Cherrywood sale will generate significant interest among Irish developers, many of whom have built up significant cash reserves in recent years.

Observers say that speculation is likely to focus on development companies such as Davy Hickey, Park Developments and Alanis, all of which are thought to have the means with which to approach a deal.

Cherrywood has been proposed for town-centre status, a designation that would significantly boost its value, but a decision on this is unlikely to be made before 2004.

Mr Smyth ruled out the possibility of pension funds becoming involved in the site, noting that it was "too robust in terms of exposure and risk".

British Land director, Mr Cyril Metliss, said yesterday that his company had received a number if approaches on the lands that he "believed to be of substance".