A development site of around three-quarters of an acre currently used as a car-park on Market Street in Galway city centre has been sold for €10.5 million - probably a record price for the city.

The plot was sold by Dublin-based property developer Bernard McDonagh and bought by two local businessmen, Marcus O'Grady and Hugh Hession.

Mr O'Grady described the site as "exceptional" and said they would be looking for planning permission for both a car-park and between 50 and 60 apartments. Mr O'Grady recently redeveloped the nearby McCambridges Warehouse on Lombard Street for his father, Mr Pat O'Grady, and partner Hugh Heskin. The scheme included 1,672 sq m (18,000 sq ft) of retail space on the ground floor which has been sold for around €4.5 million to one of the city's leading fashion retailers, Anthony Ryan. The company plans to relocate its homeware division from Shop Street to the new building where it will be able to display the latest trends in home furnishings.

The Market Street car-park has around 90 spaces and has been owned for about three years by Mr McDonagh. He has completed several developments in the city in recent years including the Radisson Hotel.

Good development sites, particularly those with retail potential, have become particularly scarce in Galway. Hence the strong price paid for the car-park which has pedestrian access from Shop Street. Heskin Auctioneers acted for the purchasers and Terry Cunningham of Cunningham Auctioneers advised Mr McDonagh.

Meanwhile, in nearby Edward Square, a further 557.4 sq m (6,000 sq ft) of retail space has become available with the redevelopment of a building in Barrack Lane. Agent Douglas Newman Good is seeking a rent of €400,000 per annum.

The three-storey over basement "picture framer" building is owned by Gerry Barrett's Edward Holdings which built the highly successful 7,900 sq m (85,000 sq ft) retail development alongside the Eyre Square Shopping Centre. The latest building, like Edward Square, was designed by architects Douglas Wallace.