A property development company based in Cardiff has secured an investment of £17.5 million from the Development Bank of Wales and £7 million from Welsh Government to fund the build of 114 new homes in Tonyrefail. It is the largest ever investment made by the Development Bank.
Work on Parc Eirin, a major low carbon mixed-tenure residential development project by Tirion Homes has begun with contractor Morganstone completing the build by the end of 2027. All 114 homes will achieve an EPC A-rating and include energy-saving features such as solar panels, communal battery storage and ground source heat pumps. There will be 81 two and three-bedroom homes along with 33 one-bedroom flats split for sale and rent across the open market and social rentals. Tirion Homes has previously completed similar housing projects at The Mill in Cardiff and Royal Victoria Court, Newport.
The £17.5 million investment for the project has come from the Development Bank’s Wales Property Fund and Wales Stalled Sites Fund with a further £7 million in grants from the Welsh Government’s Innovative Housing Programme to include £3.6 million from the Low Carbon Fund and £3.9 million via the Modern Methods of Construction Fund.
Jayne Bryant, Cabinet Secretary for Housing and Local Government has welcomed the start of work at Parc Eirin. Visiting the site, she said:
“The Welsh Government is committed to increasing the supply of affordable and good quality housing throughout Wales. We have a target to deliver 20,000 low-carbon homes for rent in the social sector by 2026."
“Not only do sites like Parc Erin support the delivery of sustainable and energy-efficient homes, but they also create employment opportunities and help boost local economies. This is exactly the type of investment that can deliver social and economic value to families and individuals across Wales.”
David Ward, chief executive for Tirion Homes added:
“We are proud to be part of this landmark investment from Development Bank of Wales and Welsh Government so that we can continue to support the government’s aim to deliver 20,000 affordable, low carbon quality homes by the end of this Senedd term. These partnerships are essential to our ability to accelerate the delivery of major regeneration projects across Wales.”
“We are delighted to be working with Morganstone to deliver Parc Eirin, which will be an opportunity to not only provide affordable homes but also homes for sale. Communities are at the heart of what we do and partnering with the Development Bank of Wales, Welsh Government and Morganstone, will help us achieve our aim to deliver high quality, sustainable homes in the Rhondda.”
Cenydd Rowlands is Property Director for the Development Bank. He said:
“As the Development Bank, this is our largest ever investment, so it is particularly pleasing that our funds are being used to support the construction industry and home ownership in Wales."
“Led by Property Fund Manager Nicola Crocker alongside Karl Jones, Senior Property Development Executive, this has been a great team effort that demonstrates our ability to deliver a range of tailored finance options for small and medium-sized developers to bring forward commercial, residential and mixed-use developments that support economic and social growth throughout Wales. It’s all part of our commitment to providing sustainable and effective business finance that brings ambitions to life and fuels possibilities for people, businesses and communities in Wales.”
The Development Bank provides short-term residential, mixed-use, and commercial property development finance from £150,000 to £10 million from a range of funds including the Wales Commercial Property Fund, Wales Residential Property Fund and Green Development Incentive.
