The 17th century Couvent d'Herepian is being developed into a boutique apartment and spa complex where features in the units include old stone steps and beautiful barrel-vaulted ceilings.

The developer, Garriage Investissements, twice winners of the Bentley International Best French Development award will both carry out the refurbishment and manage the finished project, which offers a guaranteed 5% gross yield on a nine-year lease.

The apartments are being restored within the old convent building and their finish will "boast authentic decor and an air of chic and unostentatious refinement, " according to Gillian Ryan of Colliers Jackson-Stops.

The convent sits above the village of Herepian, beside a golf course and the spa town of Lamalou-les-Bains. It is surrounded by vineyards of the Languedoc area, as well as the famous Languedoc National Park.

The convent building is set on a terrace within the hillside village, with views over the old buildings and countryside below.

The developers hope to create a spa destination out of the convent, where beauty treatments and massages, a relaxation room and indoor swimming pool will all be available to clients staying for weekend breaks or longer holidays.

The historic buildings make for attractive apartments, with old stone walls and beautiful vaulted ceilings, interesting windows and big old doors . . . features the developers plan to restore meticulously as part of the project they hope to complete by autumn 2007.

The development is very accessible to Ireland, but it is likely to appeal to French holidaymakers looking for getaway-from-it-all breaks as much as overseas tourists.

This is a leaseback scheme with a nine-year lease offering a guaranteed index-linked income. The yield is 5% gross annual return.

Like many leasebacks in France, the payment schedule is organised in stages, with 69% of the full purchase price expected to be paid over on completion of the ground floor. That, according to Colliers Jackson-Stops, is likely to be around September of this year.

The remaining money is to be paid in two further stages:

the first when the roof and external carpentry are finished, and the final 5% on delivery of the apartment.

Costs associated with the building include a land and property tax (tax foncee), estimated at 500a year.

Running costs for the building itself are covered in the leaseback agreement with the management company, but communal costs are payable by the owner. These amount to a maximum of 15 per sq m per annum, which works out at a maximum of 820 a year for the one-bed and 1,159 for the two-bed.

The buyer pays the price, excluding VAT, while the developer reclaims VAT. The building must be owned for a full 20 years if it is to qualify for full VAT exemption under the leaseback scheme.

The 5% index-linked guaranteed rental return is payable only to those who do not use the accommodation, but there is a 25% discount available on accommodation if the owner wants to stay in the complex. The management company says the price is likely to be around 140 a night, to a maximum of 1,000 a week.

Accountants costs per year are estimated at around 250, while legal fees for the property are 2.5%, including stamp duty and registration.

Price: From 151,318 for a studio to 360,972 for a 2bed Agent: Colliers Jackson Stops, 01-6333700