Eircom seeks £9m for Terenure site

Next month's budget is likely to determine whether Eircom finds a buyer for a well-located housing site of 11 acres at Kimmage Manor in Terenure, Dublin 6W, which is going on the market today with a guide price of £9 million (€11,427,642).

The Minister for Finance, Mr McCreevy, is looking at ways of reversing the slowdown in housebuilding activity which has made it difficult to sell residential sites in most areas.

A few hundred yards from the Eircom site, AIB has dropped the asking price from £9 million (€11.43m) to £7.5 million (€9.52m) for its former sports grounds on College Drive, which has been on the market since May.

Though the Government has succeeded in its aim of bringing down housing land values, the Department of Defence has refused to budge on its asking price of £20 million (€25.39m) for the 14-acre Clancy Barracks at Islandbridge, Dublin 8, even though its value has fallen significantly.

Not surprisingly there have been no takers and virtually no interest in the barracks which first went for sale last January.

The fact that Dublin Corporation is entitled to take up to 20 per cent of any residential scheme for social housing has also hindered a sale.

Eircom is more optimistic of finding a purchaser for the Kimmage Manor land on Wainsfort Road land which includes almost 10,500 sq ft of buildings that are used as a training centre.

They were previously run as a seminary by the Holy Ghost Fathers.

Pat Nolan of Hamilton Osborne King says the property may be of interest to third level educational institutions or to language schools.

It might also appeal to Government agencies looking extra space.

A feasibility study prepared by architects McCrossan O'Rourke Manning suggests that there is potential to build 289 residential units in a mixture of houses, apartments and duplexes.

An alternative proposal would involve the retention of the existing buildings and the development of 135 homes.

Significantly, the sale of the Kimmage Manor land by tender has been fixed for December 14th - nine days after the Minister for Finance is to outline the Government's final budget.

Should the Minister decide against watering down some of the measures introduced as a result of the three Bacon reports, the problems facing the housebuilding industry will almost certainly worsen in the months ahead.

Eircom is expected to offload other properties in its £100 million (€126.97m) portfolio following the reduction of its staffing levels.

Last year it secured just over £7 million (€8.89m) from the businessman Ben Dunne for another training centre and a development site at Glondore Road, off Griffith Avenue.

It is now to be used for a new leisure centre.