Dublin City Council has granted planning permission for the €700m (£476m )redevelopment of Arnotts shopping centre in North Dublin.

The retail and leisure scheme, which spans Ireland’s oldest department store Arnotts, and four Dublin streets, is called the Northern Quarter. It comprises 1.4m sq ft (130,063 sq m) and includes 47 shops, 17 restaurants and bars, a 152-bedroom four-star hotel and 189 flats.

It was designed by HKR Architects and will have four entrances on Middle Abbey Street, Prince’s Street, Henry Street and Liffey Street. It aims to create a greater connection between the north and centre of the city linking O’Connell Street and Henry Street.

In a significant move for the city the Irish government has said it will close Dublin’s General Post office, the scene of the Easter Rising in 1916, and has set up a think tank to discuss plans to redevelop it as part of the Northern Quarter scheme.

The government is planning a €250m (£170m) refurbishment of the post office that will turn the iconic building into a mixed development of museums, restaurants, galleries, shops and performance areas for the arts. The redevelopment of the site is linked to the celebration of the centenary of 1916 in nine years' time.

In May Arnotts, which is owned by Nesbitt Acquisitions, selected Centros Miller as preferred developer for the Northern Quarter scheme beating competition from Irish developer Ballymore. Centros Miller will take a 25% stake in the completed retail and leisure development.

King Sturge and Savills Hamilton Osborne King advised Arnotts.