Workmen are starting to transform a landmark Hove building into one of the grandest addresses in its neighbourhood.

In its heyday, Palmeira House was perhaps the finest emporium in the town, serving high-class customers.

Now its upper floors are being converted into apartments which will boast stunning views over the floral clock and Palmeira Square.

The Grade II listed building was until recently home to Michael Norman Antiques but has been sold by its owner, millionaire businessman Michael Keehan, for an undisclosed sum.

Mr Keehan, who has moved his antiques business to Frederick Place, Brighton, said: "The building has a fascinating history and was originally known as the Harrods of Hove.

"It was owned by Brighton and Hove Co-operative Supply Association and it was said almost anything could be bought there."

The emporium, on the corner of Holland Road and Western Road, dates from 1873 and included a reading room and the facility for gentlemen to buy and sell shares on the London Stock Exchange.

Records show it was selling fine cognac for the princely sum of £1 a gallon in 1891.

It later became the smartest furniture store in Hove before Maples moved out and Michael Norman Antiques moved in.

Plans to convert the building into a hotel were approved by the city council but fell through before Gleeson Classic Homes won permission to create 14 apartments, including a luxury penthouse,.

Scaffolding swathed in blue protective netting has gone up while the conversion goes ahead.

Julie Frith, Gleeson's marketing manager, said major construction work was planned inside and outside the building over the next few months.

She said: "We have worked very closely with the council's conservation officer and it has certainly been a challenge to the skills of the architects.

"It is good to feel that we are giving this historic building a new lease of life."