Developers whet their lips on Galway sites

DevelopmentSites: Two top redevelopment sites in Galway city are due to come on the market later this year. Jack Fagan, Property Editor, reports

Galway property developers are awaiting news on two important redevelopment sites in the city which are expected to come on the market later this year.

There are strong indications that An Post is to sell the GPO on Eglinton Street and, in the meantime, NUI Galway has already decided to dispose of about five buildings which house the engineering department at Nuns Island.

The GPO is of considerable interest to retail developers because it occupies up to an acre close to the city centre where prime shopping facilities are quite restricted. Speculation about the possibility of offloading the GPO started about two years ago when sorting office staff were transferred to a new building on the Tuam Road. However, Eircom still has a telephone exchange at the rear of the site which is likely to be relocated in the event of a sale.

A spokesperson for An Post said they were reviewing usage of all their properties and, while the GPO in Galway was also being looked at, nothing was imminent. "We are looking at it but there are no action stations at the moment. We are no further down the line than we were nine months ago."

Sources in An Post have nevertheless suggested that a sale is inevitable because the property is now under utilised and in need of expensive refurbishment if it is to be retained. The building, which is valued in excess of €5 million, is likely to be of interest to Brown Thomas because it is separated only by a lane from their fashionable department store, previously known as Moons.

Earlier this year An Post sold the post office at Henry Street in Limerick for over €3 million.

NUI Galway is likely to get over €10 million for five buildings which are used by the engineering department on Nuns Island in the city centre. The five buildings are from 325-1,858 sq m (3,500-20,000 sq ft), the largest the four-storey McGloughlin's Building which is listed for preservation and fronts on to the Corrib river. Two of the other buildings adjoin the canal. The site, thought to be around two acres, could possibly be used for up to 100 apartments. It is the best available residential site in the city centre.