Ireland's first retail factory outlet, due to open for business in Killarney next March, is expected to produce a rental income of £2 million annually for its developers, Green Property.

The company is also to charge commission based on the turnover of the 45 to 50 businesses expected to locate in the 90,000 sq ft centre. The Killarney Outlet Centre is being built near Killarney Railway Station.

The £10 million centre will have two retail levels covered by a glazed roof. There will be parking for 300 cars.

Green Property's managing director, Stephen Vernon, at a ceremony to mark the laying of the foundation stone, said there had been a tremendously positive reaction from consumer goods manufacturers who would sell end-of-season designed and branded goods, fashion, sport and household items directly to the public at discounts of up to 70 per cent. Contract discussions were already under way.

There are over 500 factory outlets in the US and 20 in the UK, with 20 more in the pipeline. Green has appointed a British agent to handled lettings.