The Government has approved a €118 million deal that will allow private firms to develop two south Dublin sites currently housing the Digital Hub.
The Digital Hub Development Agency (DHDA) and the Office of Public Works last month invited tenders for the two sites along Thomas Street in the Liberties with a combined area of almost 5.6 acres.
Minister for Communications, Marine and Natural Resources Noel Dempsey confirmed today he had approved the acceptance of two tenders that would see two different property firms given the land on which to build a combination of apartments, offices, retail and public spaces.
When finished, the whole development will total 60,000 square metres (650,000 square feet).
In exchange for the land, the State will receive a mixture of cash and over 13,000 square metres (140,000 square feet) of office space.
Mr Dempsey said there were "half a dozen" bidders for each site. The winners were Manor Park Homebuilders, which will develop a site on Crane Street, and P. Elliot & Co, who successfully tendered for the Windmill site on the north side of Thomas Street.
The exact amount each firm bid was not disclosed. However, Mr Dempsey said the deal was "in the region of €118 million."
The two firms will now be required to submit a planning application within six months.
The Government has already spent about €70 million developing two acres of the nearly nine acres comprising the Digital Hub. Fifty companies employing 400 people are based there at the moment. Expansion has been hindered by the fact there is a shortage of space for firms wishing to move in.
In addition to the space issues, the Digital Hub has experienced a number of setbacks. Earlier this year the Government closed MediaLab Europe, a research laboratory on the site.
A previous competition to appoint a developer to the site collapsed last March when negotiations with preferred bidder Manor Park Homes broke down. The DHDA ran out of funds following the collapse of talks and the Government was forced to sanction €4 million in short-term financing last September to keep it afloat.
But Mr Dempsey today reiterated the Government's commitment to the digital media sector to Ireland. He said Ireland's participation in the sector was vital, as "the global market could be worth over $400 billion in the next few years".
