Dublin property developer Mr Gerry Gannon paid £12 million at auction yesterday for 6.8 acres of housing land in Malahide Village in north Dublin. An 18th century thatched house, The Casino, on the site is listed for preservation. Bidding at the Hamilton Osborne King auction opened at £4 million and with three parties chasing it, it was declared on the market at £10 million by auctioneer Mr Pat Nolan. Mr Gannon already owns other building sites in the Malahide area and was involved in the development of Malahide Marina. A feasibility study carried out by a Dublin firm of architects suggested that even allowing for the retention of the landmark house on about an acre, the remainder of the site could accommodate a mixture of 175 apartments and houses.

Although the land has been rezoned for housing since the 1993 Dublin County Development Plan came into operation, it is unlikely to be developed for at least two years because of a shortfall in the local sewerage facilities. The thatched house is one of the oldest in the greater Dublin area. The earliest part of it dates from the 18th century, but it has been extended several times over the years. The same family has owned it since the turn of the century. The strong price paid for the land is a reflection of the shortage of second-hand houses in Malahide because of the small number of developments completed in recent years.