The second phase of a major shopping centre in South Dublin is to go ahead despite Ireland's economic downturn.

Stage Two of Dundrum Town Centre will require significant demolition of existing properties on Main Street to make way for the new four storey building which will contain shops, restaurants, a creche, a medical centre and a library.

The developers behind the project, Lenridge Properties Ltd, are also to go ahead with their planned nine-storey, 96 bedroom hotel. A spokesman for the company insisted that they were confident the proposed hotel would be a success as there is a lack of alternative accommodation in the area; they were equally upbeat about the provision of more shops, stating that there is a demand for extra retail. "The project is going ahead, there is no question about it," he said. Notwithstanding planning objections, construction work should begin in late 2009.