Laing O’Rourke faces corporate probe over Marbella row

An Irish property developer has hired a corporate investgator to probe Laing O’Rourke over a property dispute in Marbella.

John Magnier, Ireland’s seventh richest man, has appointed financial detectives Kroll to investigate the construction giant in what is an increasingly bitter battle over a luxury villa development in the Spanish resort, according to the Times.

The newspaper says the Irish tycoon wants Kroll to look at the finances of both Laing O’Rourke and “its reclusive chairman, Ray O’Rourke”.

Laing O’Rourke is due at a High Court hearing tomorrow, where it will aim to have one of its special purpose vehicles, Explore, declared insolvent.

Explore was established following a deal between Laing O’Rourke and Magnier in December 2006 for the joint development of 30 luxury villas in Marbella.

Explore agreed to pay Magnier £25m for half the site, but since then, has only paid up £3.5m and is refusing to pay more.

In November, Irish courts ordered Explore to pay Magnier a further £3.5m immediately, with several further payments due before the deal is completes in 2011. Magnier argues that Laing O’Rourke is responsible for Explore’s debts.

Magnier has built a personal fortune of £678m from bloodstock and property. He used Kroll during a row with Sir Alex Ferguson five years ago over the stud rights to Rock of Gibraltar, a racehorse.