Clerys Quarter - a new mixed use development which will include a new 176 bedroom hotel, retail and office space as well as new restaurants and bars - has been launched in Dublin city centre.

The development will see the restoration of the Clerys department store's iconic features, including its façade, internal staircases, columns and the famous Clerys' clock.

The site was bought by Europa Capital and its local partners, Core Capital and Oakmount, last year from the Natrium consortium.

The group, led by businesswoman Deirdre Foley, hit the headlines in mid-2015 when it bought Clerys for €29m under controversial circumstances that led to the loss of hundreds of jobs.

Europa Capital and its partners bought the Clerys development with the benefit of planning permission to extend the current buildings from 212,000 square feet to about 344,000 square feet.

They said a tendering process for contractors is now underway and the new owners expect to start construction work in the first quarter of this year.

An estimated 750 construction jobs will be created during the building phase of the development and it is expected it will provide over 400 new jobs when it is finished in late 2020.

Europa Capital, Core Capital and Oakmount said they are in talks with a number of occupiers for the retail, office and hospitality areas of the new development.

Business group Dublin Chamber said the planned revamp of the Clerys department store promises to re-establish the building as the jewel in the crown of O'Connell Street.

The proposed Clerys Quarter from North Earl Street in Dublin city centre

The Chamber said the proposed overhaul of the building has the potential to breathe new life into Dublin city centre and act as a catalyst for the rejuvenation of O'Connell Street.

Dublin Chamber CEO Mary Rose Burke said it was sad to see the Clerys building sit idle for so long.

"This is the type of mixed-use development that Dublin city centre is crying out for," she said.

"The redevelopment of Clerys, combined with the future development of the Carlton Cinema site, has the potential to inspire a new golden age for O'Connell Street," she added.