The owners of the Square Shopping Centre in Tallaght, Dublin, have told the Commercial Court a proposed €40 million extension is necessary because it has become "dated and threatened" due to more modern facilities in the city.

Last month, Dunnes Stores, one of of The Square's main tenants, brought a High Court challenge against An Bord Pleanála over its granting permission for the large extension across two sections of the existing centre.

Dunnes said it has concerns about conditions in the permission relating to the impact the extension will have on its retail business at the shopping centre.

Indego, the majority shareholder in the centre's operating company, Square Management Ltd, was yesterday granted permission to have the Dunnes challenge fast-tracked in the Commercial Court. Bernard Hamill, a director of Indego, said the extension is "an important and necessary development of The Square".