Dunloe Ewart is initiating a legal challenge over the handling by the North's Minister of Social Development, Mr Nigel Dodds, of its proposed £150 million sterling (#237 million) Cathedral Way development in Belfast City centre.

Dunloe Ewart has submitted a proposal for a development with a total floor space of 450,000 sq ft, including 275,000 sq ft of retail space, a 75-bedroom hotel, art gallery, health club, apartments and parking for 1,000 cars. The developer already owns 85 per cent of the site and is seeking compulsory purchase orders for the remaining properties on the site.

In July, Mr Dodds announced his support for a rival retail, hotel and leisure development by the Dutch company Multi Development Corporation's (MDC) on the south side of the city centre.

MDC, which does not have a substantial land holding on its proposed site, has outlined plans for a £200 million sterling mixed retail, hotel, apartment Victoria Square area.

The Minister also favoured the MDC scheme over another proposed retail and leisure development in the College Square area by British developer Land Securities and local developer Deramore.

Dunloe responded to the Minister's decision by saying it wished to go ahead with its scheme. The company said its scheme did not pose a threat to Victoria Square.

Yesterday, a Dunloe Ewart spokesman confirmed the company would seek a judicial review which is likely to be lodged with the courts in the coming week. He claimed that the Department for Social Development has taken actions which "unfairly prejudice" Dunloe Ewart.