The consortium which paid a record price for a 14.5 acre site at Merrion Road, Dublin 4, is to explore the possibility of developing a private hospital on similar lines to the Blackrock Clinic.
Another group headed by taxation expert Derek Quinlan is also looking at the feasibility of locating a private hospital on part of a site of 11.8 acres at Stillorgan acquired recently for around £25 million (#31.7m).
Mr Jerry O'Reilly's consortium, which paid £36 million (#45.7m) for the Merrion Road site, is expected to give priority to the hospital project now that the Government is to introduce new tax breaks to encourage the private sector to fund these facilities.
Developers will be able to write off 100 per cent of the cost of building and equipping private hospitals with at least 100 beds over seven years. However, the allowances will be limited to £25,000 (#31,743) per year for passive investors.
A British group hoping to open a private hospital in opposition to the busy Blackrock Clinic is expected to have discussions with the owners of both sites in south Dublin. In addition to the proposed hospital, Mr O'Reilly is likely to seek planning approval for anything from 300,000 to 500,000 sq ft of high tech offices as well as several hundred apartments.
Another obvious facility on the shortlist is a park-and-ride multi-storey car park, because of the close proximity to the DART.
The Merrion Road site is easily the best to have come on the market in Dublin over the past decade.
The strong price obtained for it by Gerry Henry of Farley Property Consultants means that the new owners will be hoping to get permission for a mainly commercial development to maximise the return on the investment.
Under the zoning for the site, no less than 28 use types are listed as "permissible", not least among them a science and technology based industry. Although property developer Bernard McNamara of Michael McNamara and Company bid separately for the site, it will be no great surprise if he is invited to join the consortium, given his current business association with Mr O'Reilly.
Both men are major shareholders in the huge Bishops Court office scheme in Kevin Street, which has been pre-let.
They are also involved in a joint venture to develop an apartment and office scheme at Barrow Street which was bought from IAWS for £8.8 million (#11.17m).
