Investor Merleview sues Elkstone Capital over Leopardstown apartment scheme financing

Left · 1Merleview Ltd, a corporate investment vehicle, is suing Burton Carmen Ltd and Elkstone Capital Partners Ltd over alleged misrepresentation as to projected returns and non-disclosure of an aggregate promoter fee. 1 Left · 1Burton Carmen is a special purpose vehicle set up to acquire, hold and develop a property at Leopardstown Park, where it was claimed around 145 build-to-rent apartments would be developed; Elkstone was the promoter and manager of the investment. The defendants deny the claims. 1 Left · 1On Monday 12 October 2026 the case was entered to the fast-track Commercial Court by Judge Eileen Roberts on consent. It was adjourned to next month after the judge was told there may be mediation or, the defendants say, that the dispute may be covered by an arbitration clause. 1

Left · 1In a sworn statement, Merleview director Andrew Murphy said that in February 2022 Elkstone director and chief revenue officer Ruairí O’Neill presented him with equity and debt pitch decks. He said these forecast an exit value of €14.9 million, a 42 per cent IRR and a 2.01 times multiple on a €2.9 million equity investment over 24 months, plus a 10 per cent annual senior debt coupon. 1 Left · 1Murphy said Merleview relied on these representations to subscribe for ordinary shares and advance a senior debt facility totalling €446,969, then advanced a further €303,000 as a loan note in July 2023. The loan note certificate stated 7.5 per cent interest rather than 10 per cent; in August the defendants’ solicitors sent a corrected certificate showing 10 per cent from March 2023 and acknowledged the original was wrong. 1 Left · 1In April 2026 Merleview raised 10 categories of complaint, including non-disclosure of a promoter fee entitlement of some €781,000, which Murphy said equalled 15.5 per cent of about €5 million raised. He also alleged an unauthorised change of strategy from a private rental scheme to build-to-sell without the required investor majority consent, and breaches of reporting obligations under the subscription and shareholders agreement. 1

Left · 1The defendants’ solicitors denied liability and said Elkstone owed Merleview no duty of care given disclaimers in the pitch decks and the agreement. Merleview issued proceedings last August seeking recovery of the €303,000 principal, damages for breach of duty and for intentional interference with its economic interests. 1 Left · 1Murphy said the matter should be resolved without delay because Merleview’s senior debt and loan notes have been in default since July 2025 with no principal repaid, and the defendants have not produced audited accounts, management reports or verified fee accounts. The defendants’ solicitors have indicated they will seek security for costs, but Merleview says it is fully solvent. 1