Dún Laoghaire-Rathdown County Council has paid €4.25 million for the 83-acre Fernhill Estate in Sandyford, Co Dublin.
The property was bought by developer David Arnold for about €45 million in 2008 and was subsequently taken over by Nama.
It went on the market in April through Colliers at a guide price of €5 million.
“I can confirm that the council has entered into a contract for the purchase of Fernhill House and Gardens at a cost of €4.25 million,” a spokeswoman for the council said. “The sale has not yet closed but we expect that it will close shortly.”
Located 11km south of Dublin on the Enniskerry Road between Sandyford and Stepaside, Fernhill gardens were begun in the early 19th century and enlarged and developed by their owners over the decades. The Walker family owned the property from 1934 onwards.
The gardens contain rare collections of plants, trees and shrubs, including specimen rhododendrons and magnolias. The house was first built in 1723.
The site contains a total of 84 acres, about 45 of which are wooded. It had been open to the public but has been closed for several years.