A NEW £8m office for up to 250 people is being built near Southampton within eight months.

A number of unnamed companies are already in negotiations with agents to take over the two-storey Phoenix House, which is big enough to act as a headquarters for a sizeable business or as a major regional base.

The state-of-the-art building at the Botleigh Grange office campus near Hedge End marks the first speculative development of its kind locally since 2002 and will be 23,560 sq ft in size.

Work has already begun with the site levelled in readiness for the foundations to be put in.

Russell Mogridge, of Southampton-to-Portsmouth commercial property agency Hughes Ellard, which is driving the scheme, said: "There is pent-up demand for quality category A office space on the western side of the M27, and Phoenix House was born with this pressing need in mind.

"The £8m scheme is set to be completed by mid-December. It is fantastic news for the market and keen interest is already being shown from various parties."

The developer is Wyncon, which has a track record in successful commercial property developments across the UK, including Whaddon Business Park at Salisbury and Highgrove Industrial Park at Portsmouth.

Bob Stoyle of Wyncon said: "We have every confidence that businesses will be flocking to prestigious Phoenix House because of what it offers in the way of quality office space.

"There are other factors as well - the proximity to the M27 motorway and the local railway stations of Hedge End and Botley and the fact that Phoenix House will have some of the best-known companies in Hampshire as neighbours."

Funding is being provided by London-based SPREFS, a property investment consultancy, while the builder is Fareham's Amiri Construction.

Phoenix House will rise on two acres of land that has been sold for an undisclosed sum to Wyncon by Southampton heating firm Dimplex, which is headquartered nearby.

The Botleigh Grange business park campus is one of Hampshire's employment hotspots, with upwards of 1,000 people working for household names like Lloyds TSB Bank, support services giant VT and nationwide opticians Specsavers.

The previous speculative development at Botleigh Grange was 30,000 sq ft Burlington House.