After months of speculation it has been confirmed today that Limerick City and County Council have signed an agreement which will clear the way for the 340,000 sq ft former-Dell building in Castletroy on the edge of Limerick City to be converted into a film and television studio.

The agreement has been signed with a newly established company, Troy Studios to develop the production facility.

It was origionally believed that the studio would be run in conjunction with Ardmore Studios in Bray, Co. Wicklow - who would lease the facility from the council’s development vehicle, Innovate Limerick.

Limerick Leader reports that these plans have been tweaked, and that Ardmore Studios' chief executive, Siún Ní Raghallaigh and its joint owner, Ossie Kilkenny and producer John Kelleher have become directors of a new company, Troy Studios Limited - which has been specifically established to work on projects for the Limerick facility.

Pat Daly, Limerick's director of economic development and planning, announced the studio deal at a special meeting of the council.

Conn Murray, Chief Executive, Limerick City and County Council commented on the project - "This is an extremely welcome development as it presents a diverse range of opportunities for the wider arts, crafts and culture sector in the region, and particularly those undertaking third level digital media courses in Limerick."

The development is expected to create 750 new jobs and contribute €70m to the local economy.

Siún Ní Raghallaigh has said that Ardmore has had to turn away business in the past, due to its limited capacity.

She commented on today's announcement: "The availability of appropriate full service studio space in the country is a restraining factor for Ireland's audio visual sector's growth. Today's announcement is an important step in the right direction to redress that imbalance. 

"Troy Studios will add 70,000 sq feet of studio space to the existing 110,000 sq feet of sound studio space that already exists in Ireland."

The head of Disney in Ireland warned in April of this year that a lack of studio space could lead to the country missing out on new investment opportunities.

Limerick City and County Council purchased the old Dell building for €5.5m in May - it hopes that the studio will be fully operational by the end of the second quarter of 2016.