ELEVEN out of 12 industrial units, part of a planned £2 million office and industrial development in York, have been sold - even before achieving detailed planning consent.

The 22,000sq ft Pyramid scheme by York property developer The Helmsley Group is set to arise at Ouse Acres just off Boroughbridge Road, the site vacated when the RR Donnelley printworks moved to Flaxby Moor four years ago.

The rush to buy the proposed little factories, when so far only outline permission has been granted, is seen as proof of the massive demand by small and medium-sized ventures for self-owned rather than rented business premises, and underscores the buoyancy of the York business community.

Given detailed consent at the City of York Council planning meeting on Thursday, September 16, the high-quality, single-storey industrial units, which are between 1,100 and 1,600sq ft in size, will be ready for occupation in 12 months' time.

Isis, a second phase of development which will comprise four two-storey office buildings of between 1,000 and 1,250sq ft each, is also planned on the same site, and is said to be receiving high levels of interest from York businesses looking to buy and expand into new premises.

When the two projects are completed, they are expected to generate about 100 jobs.

Ian McAndrew, from The Helmsley Group, which is behind prestigious office developments in York, such as the £60 million Monks Cross North business park on York's north-east ring road, said purchasers had been a mixture of private investors, manufacturing companies, light engineering, and assembly and distribution services - all planning to relocate within the York area.

He said: "There has never been a better time to purchase commercial property.

"Small owner-managed businesses are taking advantage of the low cost of borrowing and investing in their own business premises either directly or via their pension funds.

"Property is an excellent long-term investment, which is an attractive alternative following the disappointments and scandals in the pensions market.

"If owner-managers invest in commercial property now, they have the potential to reap the rewards of capital growth once they sell the business or when they retire."

Richard Flanagan, of property consultants Lawrence Hannah and Skelton, said: "The fact that small businesses are willing to invest in their own premises is excellent news for the York economy and reflects the high confidence within the business community.

"Pyramid and Isis are being developed to a high standard by an experienced team."

Updated: 09:41 Thursday, September 02, 2004