German discounter Lidl is to open in the former Tesco shop in Dundrum shopping centre after its owner decided to reopen the centre, which is earmarked for the €600m second phase of Dundrum Town Centre.

"The company was approached by a number of retailers to reopen the old centre and we are delighted to welcome Lidl. We have taken the decision in light of the interest and the current economic climate. We are still committed to completing the second phase of the town centre which is the subject of a planning appeal with An Bord Pleanála," said a spokesman for Lenridge Properties, owned by Joe O'Reilly's Castlethorn Construction.

Joint agents Savills and Bannon are now seeking tenants for the other 13 shops in the centre.