ONE of York's biggest construction companies is to relocate its headquarters, following a massive property deal.

Simpson (York) Ltd fought off large numbers of rival developers to secure a two-acre site at Chessingham Park, in Dunnington.

The company plans to move to the new site from its current headquarters in Outgang Lane, Osbaldwick, in the next few years.

It will also provide small industrial units for businesses to buy - a move aimed at filling a gap in the local property market.

Offers over £1.25 million were sought for the site, which contains more than 35,000sq ft of vacant warehouses.

Simpson (York) chairman and chief executive, Ron Gatenby, said he felt the acquisition would not only facilitate his own firm's expansion plans, but also those of others wanting to own rather than rent business premises.

Mr Gatenby said: "We have simply run out of space at our Osbaldwick site to expand further. The new site is very exciting for us and hopefully for other businesses in the near future."

Simpson (York) is considered a leading player in the building field, and has won a number of high-profile contracts across the country.

Contracts currently under way include refurbishment works to Heslington Hall and campus buildings at the University of York, refurbishment work at Nestl Rowntree, and, further afield, a refit of offices for the Telegraph Group in London.

The company is also refurbishing and redeveloping Foss Bridge House, in Fossgate - the former home of FR Stubbs ironmongers - ready for use by the Loch Fyne Restaurant group.

York property consultants Blacks have been appointed to advise on the development and handle marketing.

Blacks partner Andrew Hedley said he was excited at the opportunity to sell industrial units in a market place where most were restricted to leasing.

He said Simpson's move was seen as a major commitment from a York company which operates throughout the country.

"The developer's attitude to this project will be a great boost to the local economy," he said.

"There are many businesses looking to buy premises and few opportunities exist in the Great York area.

"This site will give businesses a chance to buy and hopefully trigger their own expansion plans, with an obvious effect on employment prospects."