A BITTER dispute between two of the country's biggest property developers over a valuable development site in Cork's docklands has come before the Commercial Court.

O'Flynn Construction (OFC), developer of the "Elysian" mixed office and residential development on three acres in Cork's docklands, including an 80 metre high 17-storey tower which will be the tallest building in Ireland, is suing Howard Holdings plc (HH) over allegedly reneging on an alleged joint venture agreement (JVA) relating to a site adjacent to the tower, known as "Doyle's site".

OFC, of Barrack Square, Ballincollig, is headed by Michael O'Flynn and he claims there was a JVA dating back to September 2005 under which HH would purchase the Doyle's site, OFC would develop it and HH would get portions of the development.

OFC had believed in April 2005 it had a deal to acquire the Doyle site and it came as "a shock" to Mr O'Flynn when he learned some weeks later that the vendors were in discussions with HH concerning the site, counsel said.

Mr O'Flynn and Mr Coughlan of HH subsequently reached an agreement under which OFC would not pursue its acquisition of the site and HH would be free to do so. It was also agreed the site would then be subject to a JVA under which OFC would develop it and HH would get possession of portions of it. There were subsequent other meetings concerning the JVA and a final agreement on outstanding matters was reached at a meeting on March 9th 2006 at OFC's offices at Model Farm Road, counsel for OFC said.

Mr O'Flynn had said that meeting ended with a handshake between him and Mr Coughlan, counsel said. Mr O'Flynn had said they were "two property men" and that, when they shook hands, "we know what that means".

But in November 2006, after Howard Holdings had "tied up" the acquisition of the Doyle's site, it said it would not proceed on the basis of the agreement, Mr Cush said.