Two Dublin property investors have paid €107 million - €27 million above the guide price - for an apartment and office site at the Red Cow Roundabout on the N7/Naas Road in west Dublin.
The site of 5.8 hectares (14.35 acres) was sold by An Post and includes warehousing and offices which were previously occupied by SDS. Jones Lang LaSalle handled the sale.
James Meagher of estate agents HT Meagher O'Reilly, who advised the purchasers, said they might well opt for a "signature building" on the site to mark what was a major gateway into the city.
The development plan for the area has already recommended a detailed urban design master plan for the site because of its prominence alongside Ireland's busiest roundabout.
The new owners will be hoping to get planning permission for between 1.5 and 2 million sq ft of residential accommodation, offices and ground floor retail space.
The scheme will probably include about 1,000 apartments which would have the advantage of being located next to a Luas station and a park-and-ride facility. The site is also beside the M50, giving easy access to the Belfast, Galway and Wexford roads as well as Dublin Airport.
There are plans to upgrade the Red Cow Roundabout, including a north-south bridge between the Luas park-and-ride and Monastery Road in Clondalkin, which will allow traffic to cross the Naas Road unhindered. The Red Cow roundabout will be grade separated with free flow in all directions.
The strong price paid for the An Post site is expected to have a knock on effect on adjoining land.
The main beneficiaries will include the Grafton Group, which has an adjoining 14 acres, the Irish Rugby Football Union, which owns 96 acres and property developer Noel Smyth, who has also assembled a substantial site.
