THE Jefferson Smurfit Group has sold the Lyons Estate in Co Kildare for about £3 million.

The buyer is believed to be a company owned by the three sons of GPA founder, Dr Tony Ryan. The property is understood to have been bought as an investment.

Neither party would confirm the deal yesterday, though a spokesperson for Dr Ryan insisted that he was not directly involved in the deal.

Some market sources speculated that the Ryan family may intend to restore Lyons House as a family home, while others suggested that it may be developed as a luxury hotel with golf course like the Smurfit owned K Club close by in Straffan. Any development will require planning permission from Kildare County Council.

The Smurfit group bought Lyons House and 600 acres of the 1,200 acre estate over five years ago for over £3 million. The estate adjoins Straffan House which the Smurfit group bought from the Gallagher Group receiver and developed into the K Club.

While the group's plans for the Lyons estate were unclear, it is understood it planned to build luxury houses and to use the property as an accommodation overflow for the K Club.

But it is understood Smurfit failed to get planning permission, to implement its proposed building plans. In addition the K Club was slow to take off, reducing the need for overflow facilities.

Lyons House has been unoccupied for over six years and property market sou#des said the house fallen into disrepair.

Smurfit declined to disclose yesterday the value at which the property is being carried in accounts. But the group appears have just recovered the spent to acquire the property.

Between 1990 and the latest of the estate the group will have lost the use of the funds invested and will have incurred expenses including professional fees for preparation of planning applications and security at the estate.

In December 1989 body of University the governing decided to sell the College Dublin house and 600 acres of the 1,200 acre estate. The college, which had been using the property for its agricultural and veterinary faculties, retained about 560 acre and the farmyard for teaching and research.

At that time the Georgian mansion, set in formal gardens running down to park land and a 25 acre artificial lake, had not been used by UCD for about 18 months.

Lyons House dates from 1795 and was the family home of Lords Cloncurry, son of a wealthy blanket manufacturer. It is a three storey over basement house with bow windows on either side of the entrance.

The entrance porch is supported by four columns of red Egyptian granite and shelters a pair of granite sofas supported by a pair of lions. Two storey matching wings were added in 1810.

The Grand Canal passes one side of the property and there is a range of derelict Georgian building beside it. The ground also includes a farm manager's house, three gate lodges and a number of derelict cottages.