Irish property magnate Mr Derek Quinlan will face a combination of powerful rivals if he decides to enter the €3 billion race for UK developer Chelsfield.

His company, Quinlan Private, emerged last week as a possible suitor for the London-based company, which is behind a major retail and residential development near Shepherd's Bush in London.

However, Australian developers Westfield and Multiplex have joined forces with the billionaire Reuben brothers, who already own 34 per cent of Chelsfield, to mount a bid valuing the company at £2.2 billion sterling (€3.2 billion).

They have offered £585 million for Chelsfield, and will also take on the £1.6 billion in debt it has on its balance sheet following a management buyout four months ago.

Quinlan Private last week sought financial information from the company with a view to tabling a bid. However, the firm's principal has not made any final decision on whether to proceed with an offer. A spokesman would not comment yesterday on the company's plans.

Reports yesterday claimed that Chelsfield's founder, Mr Elliot Bernerd, who owns 11.6 per cent of the company, intended to accept the offer. The joint bidders said Uberior Ventures, which has 13 per cent of the company, had given them irrevocable support.

Chelsfield has €3 billion in assets and came on the market when Mr Simon and Mr David Reubens offered their stake for sale after falling out with Mr Bernerd, who is also seriously ill.

The two Australian groups originally looked like they were going to go head-to-head to bid for the company. Under the terms of the joint offer, Westfield will invest £1.2 billion, while Multiplex and the Reubens' vehicle, Aldersgate, will split the remaining £900 million 50/50.

In April, Mr Quinlan led an Irish syndicate that bought the Savoy Hotel Group in London for €1.13 billion.