Dunloe Ewart, the all-Ireland property group, is in talks with a large international development group over a joint venture deal on its Cathedral Quarter project in Belfast.
The international group has no investments to date in Northern Ireland or in the Republic, but is understood to have earmarked substantial investment for a "suitable" retail-cum-leisure development opportunity.
Dunloe Ewart has outlined plans to create a £150 million sterling (€247 million) development that will help transform Cathedral Quarter, one of the oldest districts in Belfast, into a vibrant new arts, cultural and social quarter. The company has already spent £15 million acquiring sites in Cathedral Quarter and is now awaiting planning approval for its scheme.
But the Irish property group is not the only organisation with development plans for Belfast. The Dutch-owned Multi Development Corporation has received the backing of the Northern Ireland Department of Social Development for a £200 million scheme called Victoria Square. This is intended to be a mix of shopping, leisure and residential development in the heart of Belfast city centre, just minutes away from Cathedral Quarter.
The government department's official approval for the Dutch company sparked a legal protest from Dunloe Ewart and has created tension between one of the largest development companies in Belfast and the organisation responsible for shaping the city's future.
Dunloe Ewart alleged that the Department's Belfast Regeneration Office had "interfered" in its plans for Cathedral Quarter and has said it will launch a fresh objection to the Multi Development Corporation's plans when its scheme comes before a planning inquiry.
The property group's dispute is the latest setback for Mr Noel Smyth, Dunloe Ewart's chairman, who launched an abortive attempt to take the company private. The poor performance of smaller companies quoted on stock exchanges have frustrated Mr Smyth.
Senior industry sources in Belfast believe Dunloe Ewart is likely to be granted planning approval for its Cathedral Quarter scheme next month, which could act as a catalyst to attract new investors to the scheme.
According to sources it could also create a bidding war for big name retailers who will have to choose between Cathedral Quarter or Victoria Square.
Dunloe has one of the busiest construction portfolios in the city centre. It is expected to start construction next month on its latest Belfast developments - a new, 300,000 sq ft, eight-storey office development near the Waterfront Hall in the city, and a 200-apartment project in the city's east.
