The grounds of the Old Tramyard on Castle Street in Dalkey, Co Dublin are to be redeveloped as a residential development.

Developers James Monaghan and Rodney Sheils have been granted planning permission by Dún Laoghaire-Rathdown County Council to demolish the former tram sheds on the 0.57-acre site and build 23 apartments, as well as commercial and retail space in three blocks arranged around an open courtyard.

The plan is also to build a basement car-park with 29 spaces. The works will involve temporarily lifting and then reinstating the tram lines, which are protected structures.

However, it may not be plain sailing for the developers.

A previous planning application for 28 apartments and four commercial units was refused planning permission by An Bord Pleanála.

An Bord Pleanála rejected the last proposal because of the limited size of the site and its location in relation to adjacent residential property and its "quantum, scale and layout . . . which includes residential accommodation in basement format, with poor quality provision of private amenity space".