South Anne Street in Dublin 2 is set to be transformed by a new £20 million (#25.39m) "Bond Street" style commercial development by a company, Briarglen Ltd, associated with the development of the Jervis Centre on Mary Street.

Stretching from Dawson Street to Anne's Lane with frontage on to South Anne Street, this new development will comprise two large or multiple retail outlets and substantial overhead hotel or office accommodation. In total there will be approximately 20,000 sq ft of retail space over two floors. Briarglen is understood to be in discussion with a number of high profile prospective fashion tenants.

Planning permission has been granted for a 70-bedroom hotel with entrance from Dawson Street for the remaining 50,000 sq ft on the upper two floors of the building. However, this option is presently under review and it's likely that Briarglen will apply to Dublin Corporation to change the use to office accommodation. Quality new build office space in the city centre can command rents in excess of £40 (#50.78) per sq ft, while the Dublin hotel market is thought to have reached saturation point. According to Bord Failte, there are currently 141 hotels, with an average monthly room occupancy rate of 65 per cent, for the 4.5 million tourists who visit Dublin annually. Hotels are no longer considered the good investment they once were.

"The concept behind this project is similar to the neat retail concept of Bond Street in London, and the two stores will likely appeal to upmarket clients who can't get the space they require on Grafton Street or find that the older buildings don't suit their needs. We've had a huge amount of inquiries," reported James Meather of DTZ Sherry FitzGerald, agent for the development.

Apart from the building facades, which are protected under a preservation act, the existing buildings at numbers 21 to 26 South Anne Street and stretching back along Anne's Lane to the back entrance to Cafe en Seine - which is currently closed due to a massive refurbishment programme - have been demolished to make way for the new development. Construction work is due to commence in the next few weeks and is expected to take 24 months. A development of this size would not usually require such a lengthly time frame to complete but this site is hampered by its busy location.

Although a prominent street, South Anne Street has been under-utilised as a retail street for years. There are a few fashion retailers including the upmarket ladies fashion shop Monica John, a perfume and cosmetic store, a post office and a number of cafes and fast food outlets. The most renowned premises on the street is Kehoe's Pub, part of Louis Fitzgerald's group. McGonagles night club occupied the development site until almost a decade ago. And although it is a cross-street of Dublin's main thoroughfare, Grafton Street, where retail rents are among the highest in Ireland and substantial key money is required to get an opening, there has been a lack of development on South Anne Street according to James Meather. "This will be a huge improvement to the street and will encourage investment in the street," he said.

Short term leases and future development plans hampered the growth of the street for the last few years. Briarglen acquired the buildings five years ago for a figure reported to be in the region of £5 million (#6.35) and was waiting for tenancy leases to run out before commencing this project. The previous owners had owned the buildings for around 20 years.

The development costs are estimated in the region of £15 to £20 million, or around £100 (#126.97) per sq ft.