Preliminary proposals from a property developer seeking to acquire part or all of St Michael's Hospital in Dún Laoghaire, Co Dublin are being considered by the owners of the hospital.
The 122-bed hospital in the heart of Dún Laoghaire is owned and operated by St Vincent's Healthcare Group, which in turn is owned by the Sisters of Charity.
The group has confirmed that it is in talks with property developer and solicitor Noel Smyth about redeveloping the prime hospital site, which runs from George's Street Lower to the harbour at Crofton Road.
The group says it is currently exploring various options for the development of the site and the development of St Michael's Hospital. "Among the options being consider by the board of St Vincent's Healthcare Group are some preliminary proposals from Mr Noel Smyth," a representative for the group said yesterday.
Meanwhile, the Sisters of Mercy, who once ran a private hospital on the site, have confirmed the sale of a large carpark to Wexele, a subsidiary of Mr Smyth's development company Alburn.
The one-acre seafront site fronts on to Crofton Road and to the back of the hospital. It also incorporates a former nurses' home beside the Sisters of Mercy convent building.
The order said there is no agreement or plans to sell the convent.
In 1999 the Sisters of Mercy handed over trusteeship of the private hospital to the Sisters of Charity, who operate the public hospital.
Mr Smyth's one-acre landholding is only a quarter of the total hospital site.
If the larger hospital deal goes through it could see Mr Smyth either purchasing part of the hospital site or buying the site outright and helping build a hospital at another location. He is most likely to seek permission to build a high-density mixed-use scheme on the land.
A price of €20 million-plus per acre could be expected for parts of the site that have development potential, according to a market source. In such a scheme, two-bedroom apartments would cost between €600,000-€800,000, depending on size, and units with a harbour view would command significantly more, he said.
Mr Smyth has strong connections with religious groups. In 2001 he financed the nationwide tour of the relics of St Thérèse of Lisieux. He has also funded a hospice in Blackrock. Recently, he announced he was prepared to build a new national children's hospital at cost price on the site of the Mater hospital.