A COMPANY set up to run a city's council housing has converted a former post office into apartments for sale.

The Sunderland Housing Group owns and manages the city council's stock of rented homes.

It has now created 32 one and two-bedroomed flats in the Grade II-listed post office building in the Sunniside area of the city centre, at a cost of £7m.

The company says there has been a lot of interest in the apartments. Prices for the flats start at £100,000.

The company, which has set up a division called Pathway Homes to carry out developments for sale, was awarded English Partnerships funding for the Post Office scheme and won the residential development category of the Watson Burton Landmark Awards in October.

It has carried out similar schemes elsewhere in the city and has plans for the Customs House and Water Board buildings.

Head of sales and customer care, Jill Haley, said: "The post office is a magnificent development and we have had a lot of interest in the apartments.''