PROPERTY developers have taken the first step in the development of a £70 million apartment and office block on the site of the former International Meat Packers in Dublin.

Demolition of the old plant on Grand Canal Street started yesterday, and the project is expected to finish by the end of next year. Rohan Holdings and Borg Developments, a subsidiary of Cosgrave Homes, are developing the site.

The development will have 199 two and three bedroomed apartments and 125,000 sq ft of office space in three separate units. The apartments would not qualify for designated area tax relief, according to a spokesman.

The nearby Barrow Street DART station, approved for EU funding, is expected to be completed before the new buildings are occupied.

Dublin Corporation had granted planning permission for the residential and office buildings, the developers said. The design would include a pedestrian area overlooking the GrandCanal, open to the public during office hours.

Chairman of Rohan Holdings Mr Ken Rohan, said his company chose Cosgrave Homes because of a proven track record in residential schemes. Mr Rohan also praised Dublin Corporation's planning department far its "constructive comments and encouragement".

The Minister for Finance, Mr Quinn, attended the start of the demolition of the old IMP plant yesterday. The site is expected to be cleared within weeks.

It is understood the developers would attempt to pre let the office space in order to minimise the risk element of the investment. Construction of the apartments is not expected to start until next year.

There is a shortage of new office space so the property is expected to, come on the market at a good time. Cosgrave Homes is working on two other Dublin apartment developments, in Dun Laoghaire and Charlemont Street.

A Bord Gais Eireann site is also likely to be developed on nearby Barrow Street.