RedevelopmentSite: There will be intense competition for an OPW building beside the Jurys and Veterinary College sites in Dublin 4, writes Edel Morgan

The OPW's decision to put its Faculty Building on Shelbourne Road in Ballsbridge, Dublin 4 on the market is certain to grab the attention of top developers.

The location of the building - surrounded by the prestigious sites of developers Ray Grehan, Seán Dunne and Frank O'Malley - enhances its appeal.

Lambert Smith Hampton is handling the sale by public tender of the 0.36-acre site which it expects to fetch over €25 million. However, this could be a conservative estimate given the €83 million per acre paid last year by Ray Grehan of Glenkerrin Homes for the adjoining former UCD Veterinary College site. This was one of the highest value sales by the OPW since it began offloading public buildings.

The 1970s six-storey redbrick Faculty Building is occupied by the Department of Justice which will remain in occupation for two years. It has 17 car-parking spaces.

Lambert Smith Hampton is expected to formally announce that the site is on the market in the coming weeks and the tender deadline is expected to be towards the end of March.

The Faculty Building is beside O'Malley Construction's Shelbourne House and between Ray Grehan's two-acre Veterinary College site (for which he paid €171.56 million) and Seán Dunne's Jurys and Berkeley Court Hotel sites. Both Grehan and Dunne have plans for major mixed-use residential, commercial and retail developments on their sites.

Given the competition between Grehan and Dunne for the Veterinary College site, which fronts Shelbourne Road and Pembroke Road, there is speculation that they - and possibly O'Malley Construction - will vie for the Faculty Building in a bid to expand their respective Dublin 4 landbanks.

But Ray Grehan says the site is not of enormous interest to him. "We have our development plan laid out and it's not an essential part. The site is pretty much maxed-out in terms of density."

However, Grehan says the site is likely to attract a lot of other developers, given the location. The area is due for a complete makeover in the coming years with Grehan's plans for his site and Dunne's proposal to "bring Knightsbridge to Ballsbridge" with a mixed-use residential, commercial and retail scheme on his sites.

There may be a co-ordinated approach to development in the area with a master plan for Grehan's and Dunne's sites. This may now be expanded to include the Faculty Building site.

The Faculty Building is exempt from stamp duty under Section 113 of the Stamp Duties Consolidation Act 1999.