Leisure Development is to convert the Medical Centre on the corner of Heerengracht and Hans Strijdom avenue into a four-star hotel and apartments in a R30-million project.

Tenders for the work have been invited with the closing date set for February 11.

"Construction will begin by mid-March to the end of March and completion is expected by November 1, this year," said Leisure Development project manager Mike Smith.

This will be the company's third inner city development; it completed Perspectives in Roeland street last year and 32 apartments in Loop street in 2002.

"We are planning more, but no deals have been signed yet," said Smith.

Fountain Suites and Apartments will have parking on the basement, first and second floors of the building.

The hotel reception area, a gymnasium and swimming pool will be on the ground floor.

The 160 rooms of the four star hotel will be on floors three to six and the next four floors will each have 15 apartments with either one, two or three bedrooms.

A steel framed structure, is to be added to the top of the building.

This new level will house ten penthouses.