Castle Park primary school in Dalkey, Co Dublin is to lodge a planning application to build 81 residential units on a 2.5-acre portion of its grounds.

The site will be sold to a consortium of developers led by David Arnold, subject to planning permission being granted, at a price which industry sources believe will be in the region of €10 million. The sale of this land is to fund a major €14 million redevelopment of the school.

This will involve the revamp of existing school buildings and the creation of new teaching and sporting facilities on its 17-acre site in Dalkey, Co Dublin.

Castle Park, a fee-paying school, celebrated its centenary last year and is attended by around 275 children.

The proposed housing development will comprise 18 townhouses and 63 apartments rising to five storeys on a 2.5-acre site on the perimeter of its grounds.

The chairman of the board of the school, Alexis FitzGerald, said the school plans were designed to preserve the maximum amount of open space at the school while safeguarding its future as an independent school which receives no grants or supports from the State.

This development will enable the school to pay off significant debts which have accumulated over a number of years, while also financing the redevelopment of the school itself.

The objective is to put the school on a sound financial footing.

Smith & Kennedy Architects based in Dún Laoghaire will oversee the school redevelopment while O'Mahony Pike architects will be involved in the residential scheme.