Work has started on the refurbishment of the former Littlemore Research Institute in Oxford. RO Developments, which bought the site last November for £5.1m, will transform the property to create a 41,000 sq ft office complex, suitable for a corporate headquarters.

The first phase will be completed early next year and will provide three buildings which can be occupied by one or more tenants.

Richard Bourne, executive development manager at RO Developments, said: "These wonderful buildings will offer a truly unique working environment with outstanding natural light, high ceilings and period features in an impressive and peaceful campus setting.

"It will be a fantastic alternative to crowded business parks and usually characterless modern office blocks."

Mr Bourne added that there had already been considerable interest' in the property from prospective occupiers and that a second phase was in the planning stage.

The refurbishment is the latest chapter in the chequered history of the former Victorian hospital buildings, built in 1846.

The NHS hospital properties were bought in 1995 by Japanese drug company Yamanouchi for £3.25m, before putting them on the market with two acres of land in 2002, for a guide price of £7.75m.

Yamanouchi had been a target for protests from animal rights campaigners objecting to its work with testing group Huntingdon Life Sciences, and three years ago decided to concentrate its UK activities at its Surrey offices.

But most of the site stood empty for more than three years, until RO Developments agreed a deal.

Littlemore Park is available to let, or for sale, through joint agents Meeson Williams and Knight Frank.