Hume Street Hospital is planning to substantially redevelop one of Dublin's best-known Georgian enclaves. The hospital, which occupies a key site at Hume Street, off St Stephen's Green, is due to seek planning permission for what could well prove to be a highly controversial scheme. In 1970, there were street protests and sit-ins when Green Property Company demolished an adjoining Georgian building and replaced it with a modern office block. The six buildings owned by the hospital at 3 to 8 Hume Street are listed for preservation on List 1 of the city development plan. It is understood the hospital would like to retain about 20,000 sq. ft on one floor, once the site has been redeveloped.

The hospital board will be seeking professional advice on whether the planners are likely to allow a comprehensive redevelopment of the site.

However, Ken Gregory, who was chairman of the board up to last year, said it was hoped to "redevelop the entire . . . retaining the front facade, if required by Dublin Corporation". He said that as the buildings were 200 years old, the hospital could not possibly hope to upgrade them to comply with building and fire regulations. It is questionable whether the city planners would allow the demolition of the houses even if the facades are retained. Despite the modern block at the end of the street next to St Stephen's Green, Hume Street is still acknowledged as one of the most attractive Georgian streetscapes in the city. Even if the planners are to allow the houses to be rebuilt behind the facades, it is though likely that they would insist that the main rooms should continue to have the same proportions.

The hospital is to appoint one of the six large estate agencies in the city to advise it on future strategy. It is thought likely that a number of developers will be invited to tender for the redevelopment of the site. The hospital could expect to get its new accommodation, and possibly a premium, in return for allowing the remainder of the site to be used for an office scheme. The value of the site will be determined by the scale of the office development allowed by the planners. As things stand, the hospital is thought to be worth between £8 million and £12 million, according to a number of estate agents. With several entrances on to Hume Street, the hospital could give a developer a separate entrance on the street without affecting the hospital.

The hospital currently has about 40,000 sq. ft of space and would obviously hope to get at least twice that volume if the site is redeveloped. Even if the planners insist the main houses should be retained, there is obvious scope to add on additional space in place of rear extensions and open space fronting on to Bells Lane. One estate agent said yesterday: "It will be a very challenging site but you can be sure that all the big developers will be in competition for it because of its prime location."

There would also be competition for new office space in the area from locally based companies looking for additional accommodation. The hospital specialises in skin treatment. In 1997, it dealt with about 9,000 out-patients. At that time, Mr Gregory dismissed reports that the hospital was about to close. He said the hospital was developing a major strategy for the delivery of its services.

It is rare enough that houses on either Hume Street or St Stephen's Green come on the market. A year ago, Fyffes paid about £3.5 million for the former Arthur Cox headquarters at 42/43 St Stephen's Green. Agents McNally Handy had been quoting a guideline price of £1.8 million-plus for the two interconnecting buildings, which have 7,640 sq ft.