Developer Bernard McNam­ara is seeking €20m in compensation from Dublin City Council arising out of a dispute over a contract to develop a Dublin housing estate, the Sunday Tribune has learned.

The multi-millionaire is seeking compensation after Dublin City Council asked the McNamara/Castlethorn consortium to withdraw from two regeneration housing projects under the Public Private Partnership initiatives.

One of those projects was to develop the St Michael's estate in Inchicore, whose residents have been waiting 10 years for a promised over-haul. McNamara's contract allowed for a €12m pay-out if design changes were made during the reconstruction of the estate. He claims he is entitled to the money because of regulation changes which increased the size of 31 apartments in the development by 20%.

Both sides are deadlocked over another claim of €6m to €8m for soil damage on the site of phase two of the project, believed to have been caused by the proximity of CIE works.