THE NEXT phase of one of Southampton's most prestigious waterfront developments will be complete at the end of the month.

Scaffolding surrounding the "Sundowner" apartments in Ocean Village near the city's eastern docks is set to be removed at the end of next month.

Already, developers have sold one of the block's penthouse flats for a cool £800,000 to a mystery buyer. And they are confident that the redevelopment scheme at Ocean Village is still on course for completion by 2007.

The huge multi-million-pound building programme at Ocean Village will eventually see eight blocks of flats, restaurants and bars as well as a 180-bedroomed hotel located at the waterside site.

It is hoped that when the transformation is completed, Southampton will be reconnected with its waterfront and reclaim its title "The home of ocean racing". Last October, the city lost the high-profile "Global Challenge" yacht race to south-coast rival Portsmouth.

Race organisers blamed the lack of world class facilities in Southampton for the move.

City leisure chiefs hope that once Ocean Village is completed, world-class yachting events will be attracted to the city.

Racers will also be lured by the prospect of a huge planned redevelopment at Royal Pier, a planned revamp of Mayflower Park and the building of the city's West Quay Stage Three project, which is due for completion in 2006.

Chris Huffon Martin, head of FPD Savills residential development in Hampshire which is marketing the site, said: "From the start, it was envisaged that Ocean Village would be a four to five-year programme. The programme means that it will be completed by the end of 2006 or the beginning of 2007. Everything is still on schedule. It is very difficult for people to see what is happening because Southampton has never seen anything like this before."

Southampton's Chamber of Commerce spokesman Catherine Wright said: "Ocean Village is a key link to the waterfront development in the city that is envisaged over the next few years.

"We know we lost the race because we could not at that point provide the facilities at Ocean Village and we are hopeful we can get that race back to the benefit of Southampton."