DUBLIN, Dec 2 (Reuters) - Ireland's state-run "bad bank" will redeem another 1 billion euros ($1.25 billion) of debt this week, it said on Tuesday, passing a fresh target of having half of its 30.2 billion euros of senior debt paid back by the end of the year.

Established in 2009, the National Asset Management Agency (NAMA) paid a total of 32 billion euros to purge Irish banks of 74 billion euros worth of loans, buying them at a big discount after a property crash exposed years of reckless lending.

The latest repayment will bring the amount redeemed to date to 16.1 billion euros. NAMA said earlier this year it would aim to redeem half of its senior debt by year-end. It originally set the end of 2016 as its target for paying back that amount.

NAMA has taken advantage of a surge in demand for Irish real estate and rather than being a major liability for Dublin's finances, it said last month that it now expects to make a 500 million euro profit when it winds down its operation.

NAMA has also been tasked with helping ease the lack of supply in the housing market that is pushing prices higher again. It announced on Tuesday that it would provide funding for the planning of a large development in Dublin's Docklands.

It said the planning entails office, residential, cultural and retail space, including 42 two- and three-bedroom apartments in the part of the city dubbed "Silicon Docks", because it is home to the European headquarters of Google and Facebook. ($1 = 0.8019 Euros) (Reporting by Padraic Halpin; Editing by Mark Heinrich)