Infill Site A former nurses home attached to the original St Stephen's Hospital can be redeveloped for residential, offices or medical facilities, writes Jack Fagan

The State is to sell a six-storey building on a redevelopment site of 0.29 hectares (0.7 of an acre) at Leeson Lane, just of St Stephen's Green in Dublin 2.

The property is behind the headquarters of the Permanent TSB and the Loreto College.

Robert McGreal of agent McNally Handy will not be quoting a guide price for the well located property but, given the high value of neighbouring buildings, it will be no surprise if it fetches over €35 million when it goes to tender on November 23rd.

The tall red-brick building on the site was formerly a nurses home attached to the original St Stephen's Hospital on the Green before it relocated to the Merrion Road.

The city centre building has a floor area of 2,455sq m (26,425sq ft) and has been used mainly for storage by the Office of Public Works. The ground floor is due to be leased back to the vendor for 18 months at an annual rent of €125,000, giving a purchaser an income until a planning permission is secured for the remainder of the site.

A second building is in the course of being demolished and this will be finished before the sale is completed.

The Z8 zoning on the site would allow a number of uses including residential, offices or medical facilities.

The property has extensive frontage on both Leeson Lane and Quinn's Lane.

McGreal says the property has "enormous development potential" within a stone's throw of St Stephen's Green.

One of the strong selling points is that the sale will not be subject to stamp duty.