Appeals by two Leopardstown residents and by the Marketing Institute against planning permission granted for a 1.7 million sq ft office park on the edge of the M50 motorway at Leopardstown Road, Sandyford, Co Dublin, have been withdrawn.

This means that construction of the development, which will include a 160-bedroom hotel and 12 office buildings, can now proceed.

A businessman, Mr David Arnold, and Castle Market Holdings - a 50:50 joint venture between the quoted property company, Jermyn Investment Properties, and the privately owned property firm, Treasury Holdings - plan to invest some £500 million in the project, which will be completed in 2002.

The 20-acre site for the scheme was sold last year by a religious order, the Legionaires of Christ, for more than £25 million.

No reason was given for the withdrawal of an appeal last Friday by Mr Darius Whelan and Ms Anna Maria Mullally of Glencairn Heights, Leopardstown.

On the same day the company which was granted planning permission on behalf of Castle Market Holdings, Clyde Road Partnership also withdrew objections to certain conditions attaching to the planning permission granted last August.

An appeal by the Marketing Institute was withdrawn on November 24th. The institute had objected on the basis that part of the development would overshadow and diminish the value of its premises nearby. It also said the development would not be in keeping with the scale of the South County Business Park, in which the institute is based.

The site is adjacent to the M50 C-ring motorway along the planned route of the proposed Luas light railway. Dun Laoghaire Rathdown Co Council has said that 50 per cent of the office scheme cannot be occupied until Luas is operating and the south east extension to the M50 is completed in 2003.