A SINGLE investor is buying all 70 apartments at a York city centre development in a deal worth almost £12 million.

And another investor is interested in buying more than 50 flats at a different development near York University.

The extraordinary deals being negotiated are seen as indicative of York's red hot property market, which has led to developers scrambling to acquire any brownfield site that becomes available.

CALA Homes (Yorkshire), which is selling through Hunters estate agents all 70 flats at the exclusive Heron Court development near Foss Islands Road to a southern-based English investor, said today that York was one of the region's hottest property spots.

Managing director Gary Hardy said the contract underlined the desirability and potential of York city centre for investors and homebuyers alike.

"We are currently looking at a number of other sites within the city as demand is high and continues to increase," he added.

CALA is expecting to exchange contracts later this week on the Heron Court scheme, which comprises one and two bedroom apartments, ranging in price from £125,000 to £225,000.

Keith Hollinrake, of Hunters, said such massive purchases by single investors were extremely rare in York.

"It reflects greater confidence in the northern property market, as opposed to the southern market," he said.

He said Hunters had introduced the southern investor to the development.

The investor is understood to have a long list of client investors who would like to buy some of the flats, with remaining properties being let.

Mr Hollinrake confirmed that Fulford Place, being built by Bryant Homes in Fulford Road across the road from Imphal Barracks, had attracted the interest of an investo who was considering buying more than 50 out of the 68 flats.

Updated: 15:16 Monday, May 12, 2003