Property consultant David Courtney and developer Jerry O'Reilly have emerged as the buyers of the State-owned Faculty Building at Ballsbridge in Dublin.

The two, who often work with fellow developer Bernard McNamara, will pay €35.9 million for the 0.378 acre property. This valuation is significantly ahead of other recent deals done in the area. They are believed to have beaten off competition from three other high-profile developers: Sean Dunne, Ray Grehan and Frank O'Malley.

The price reached is well above the €25 million agents Lambert Smith Hampton had expected the property to raise. The building is currently occupied by the Department of Justice.

It marks a valuation of €95 million per acre for the faculty building, which lies in the centre of a number of high-profile development sites.

The faculty building is exempt from stamp duty. At €95 million per acre, its valuation outstrips the €83 million per acre paid last year by Mr Grehan of Glenkerrin Homes for the neighbouring Veterinary College site.

The property sits beside the two Jurys Doyle sites acquired by Sean Dunne last summer for €240 million.

This represented a valuation of €50-€60 million per acre. Both Mr Grehan and Mr Dunne plan major mixed-use developments on their sites.

Mr O'Malley's Shelbourne House also sits alongside the faculty building. Minister of State Tom Parlon said he was proud of the price agreed for the building, which is the highest-ever valuation achieved in a State commercial property sale.

"It is clear that the commercial property market remains buoyant and the value of property in this area is increasing constantly," said Mr Parlon.