Gateway site at Red Cow to make over €80m

There is likely to be intense competition for a pivotal development site of over 14 acres beside the Luas and the M50 which is expected to accommodate a large mixed-use scheme, writes Jack Fagan

One of the best development sites to go on the market on the edge of Dublin city in recent years - 5.8 hectares (14.35 acres) at the Red Cow Roundabout on the N7/Naas Road - is expected to set a record value for such a location when it is sold at tender next month through Jones Lang LaSalle.

Though no guide price is being indicated at this stage, the general expectation is that tenders will be well above €80 million, depending on the view bidders take of the undoubted potential for a high density development.

"This is a pivotal development site with exceptional potential as it is beside a Luas station, a park-and-ride facility and in an area that is destined to see major changes in the coming years," says Des Lennon of the selling agent which is handling the sale on behalf of An Post.

The site was previously occupied by SDS, and currently includes warehousing and offices extending to 16,085sq m (173,135sq ft). It is on the southern side of the N7, between the Red Cow Roundabout and Newlands Cross, and adjoins the Luas station and its associated car-parking area. The frontage to the Naas Road is 315 metres.

As well as having unrivalled access to public transport, the site is beside the M50, giving easy access to the Belfast, Galway and Wexford roads, as well as Dublin Airport and the city centre.

It is also strategically located on the road to the south of Ireland and the rapidly growing towns of Naas, Newbridge and Kildare. Effectively this is the gateway to Dublin.

Improvement works on the M50 are underway and are due to be completed by March, 2008. They will result in a significant upgrading of 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 An Post site is part of an area between the Belgard Road and the M50 which is specifically mentioned as suitable for development in the South Dublin County Council development plan because of its proximity to public transport and employment locations.

Objective five of the development plan states the following local zoning objective: "N7 gateway corridor upgrading. Facilitate appropriate high-quality mixed-use development (including offices and residential development) on lands adjoining the Naas Road/N7 between Citywest and Dublin city boundary for the purposes of upgrading this major gateway into the city. This area will be the subject of a detailed urban design master plan."

"The combination of the location, its ongoing infrastructural improvements and the intentions of the planners to create an exceptional opportunity make for an exciting, imaginative and sustainable development," Lennon said.

Based on the indications that the land will probably be rezoned for a mixed-use development, it is expected that over time the site will comfortably accommodate a development of at least 130,060sq m (1.4 million sq ft) and possibly significantly more than that. This is likely to include a mixture of retail, offices and possibly 800 or 900 apartments.

Among the other lands in the immediate area are properties owned by the Irish Rugby Football Union and Heiton Buckley. Solicitor and property developer Noel Smyth has also assembled a substantial site nearby.

A small part of the An Post site adjoining the Naas Road - 0.252 hectares (0.62 of an acre) - is subject to a Compulsory Purchase Order as part of the Red Cow Roundabout upgrade.