Growing doubts over the future of the proposed landmark development in Dublin's docklands as the fallout from economic downturn continues to take its toll on the property market.
Given the prevailing economic conditions, industry sources maintain that most of all, it is the proposal for luxury apartments and a high-end hotel that will be of concern to the development consortium.
The Irish capital may now never see the proposed egg-shaped recording studio for the super group U2 that was to top the development.
Suspended beneath vertical wind turbines and a massive solar panel, the studio was to replace the band's famous Windmill Lane facility and would have raised the height of the Norman Foster-designed tower to 180 metres - 60 metres higher than the existing O'Connell Street Spire.
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The news comes as construction industry sources have indicated that the erection of the Liffeyside high-rise building will at the very least be delayed, or even abandoned as the economic feasibility of the PPP (Public Private Partnership) project diminishes.
Contracts haven't been signed between the developer (Ballymore Homes) and the DDDA (Dublin Docklands Development Authority) and while media reports last month had suggested that a signed agreement between the DDDA and Geranger - a consortium consisting of Sean Mulryan's Ballymore Homes, developer Paddy McKillen and U2 members - was imminent, by last Friday little progress appeared to have been made.
Responding to the claims that the construction of the U2 tower was now in doubt, a spokesperson for the Docklands Authority said the "negotiation process was still ongoing" and that there were "many complicated issues which have to be agreed" before the development would commence.
The spokesperson stressed, however, that the dockland authority was satisfied with progress on the negotiations.
Ballymore Homes, meanwhile, refused to comment on claims that it was reluctant to sign the final contracts required before the development of the U2 tower could get undeway.
Only two weeks ago, five PPP housing regeneration schemes were derailed after multimillionaire developer Bernard McNamara withdrew on the grounds that they were no longer financially viable and is currently discussing the future of the project with Dublin City Council.
In the case of the proposed U2 tower development, among the hundreds of apartments and offices there are plans for the provision of a block of 34 social and affordable housing units under the terms of the PPP agreement.
(BMcC)
