The National Asset Management Agency has decided not to acquire €1.4bn worth of loans secured on the assets of property developer Paddy McKillen.

A spokesperson for Mr McKillen said he received a letter to that effect this morning.

Mr McKillen challenged NAMA's acquisition of his loans and won his case on appeal to the Supreme Court.

That court found that the decision to acquire his loans was made before the agency was officially established and it found Mr McKillen should have been given an opportunity to make representations to NAMA before it took a decision to acquire his loans.

In the High Court, NAMA had argued that Mr McKillen's loans - which they valued at €2.1bn last year - posed a systemic risk to the financial stability of the State.

This morning, the Supreme Court awarded Mr McKillen all the costs of his legal action against the State.

In a statement, Mr McKillen said he and his companies were delighted with NAMA's decision not to acquire any of the loan facilities that were the subject of the High and Supreme Court proceedings.

He said they had always maintained that their property investments in prime commercial property and high-end retail shopping centres were not the type of risky loans NAMA was established to deal with.

He said they were committed to the continued growth in their Irish business activities.

This year alone he said they had facilitated the growth of over 500 jobs in Dublin with further job announcements planned.

Mr McKillen said the costs order secured today indicated the significant result achieved in the Supreme Court.

He said it confirmed their belief that they made the right decision to pursue the case - a decision which was not taken lightly.

The costs of the proceedings taken by Mr McKillen in the High Court and in the Supreme Court, which must now be paid by the State, are being estimated at between €5m-€7m.