The former Magee Barracks in Kildare town has been sold at auction for €8.2 million – more than four times its €2 million guide – underlining the recovery in development land values close to the capital.

BBF Capital Partners, acting for an Irish client, bought the site. This Irish financier funds commercial property developments on a debt/equity basis and will now lead the process to redevelop the 51.4-acre site which is expected to accommodate a new neighbourhood community within close proximity of the town centre.

Bidding for the site started at €2.5 million and quickly moved higher as Irish developers and overseas funds chased the prime redevelopment site in the town of 8,000 close to the M7 and about 25 minutes’ drive from the M50.

John Conway of Conway Auctioneers conducted the auction along with joint agents Lisney on behalf of the Department of Defence.

The Kildare barracks was built in 1900 on the site of the former Lock Hospital. The 31st and 33rd Brigades were the first army divisions to be stationed there along with the Royal Field Artillery.

All of them served in the first World War.

After the War of Independence and the signing of the treaty, British troops moved out and they were replaced by the Irish Artillery Corp which consisted of five officers, 18 NCOs and 93 gunners.

A new barracks was built on site in 1938, and was named after gunner James Magee, formerly of the Mayo Militia, who switched sides and raised the Irish flag at the Battle of Ballinamuck in September 1798. Magee was later captured and executed by British forces.

The barracks eventually closed in 1998.