Work on the third phase of Glan yr Afon Industrial Estate in Aberystwyth has begun with confirmation of a commercial property loan for developers Ellis Development Company (Wales) Ltd by the Development Bank of Wales.
Speaking on Monday 13 January 2020, Ken Skates, Minister for Economy and Transport welcomed the first investment from the £55 million Wales Commercial Property Fund managed by the Development Bank of Wales.
Launched last year to encourage SME developers to invest in Wales’ commercial property market, the fund is financed by the Welsh Government. Loans from £250,000 to £5 million are available with a maximum five year term for mixed-use and commercial development projects in Wales.
Aberystwyth based Ellis Development secured the loan to support the development of blocks five and six at Parc Melin, the third phase of the Glan yr Afon Industrial Estate in Aberystwyth. 12 units totalling 16,910 sq ft of speculative light industrial and commercial space will add to the existing 17 units; all of which have been sold or let with tenants including Greggs and Tool Station.
Ken Skates, Minister for Economy and Transport, said: “The Welsh Government’s Economic Action Plan recognises that businesses of all sizes across Wales need modern sites and premises that will enable them to expand and grow. The £55 million Wales Commercial Property Fund is key to delivering that and is already encouraging smaller developers to invest in communities.
“The aim of the fund is to support the development of over 400,000 sq ft of much needed industrial and commercial space across Wales as part of a wider property delivery plan over the next ten years to deliver against the ambitions set out in our Economic Action Plan. The Glan yr Afon development will provide a boost to the economic outlook of Mid Wales and is an excellent example of the public and private sector working in partnership for the benefit of local people and the economy.”
Meirion Ellis-Jones, Director of Ellis Development said: “Aberystwyth is the administrative and commercial centre for Mid Wales. The Glan yr Afon development is the main trading estate in the area with a mix of modern, light industrial and warehouse occupiers and office users.
“The tailored and flexible funding from the Development Bank of Wales has enabled us to fully develop this site having successfully filled the first two phases. We have already made good progress on this speculative development and there will be an additional 12 units available to purchase or rent later in 2020.”
Cenydd Rowlands, Property Director for the Development Bank of Wales added: “The Wales Commercial Property Fund is designed to help unlock commercial developments at a local level throughout Wales. The nature of the short-term flexible funding is ideal for smaller developers who are looking to progress speculative developments.
“The support for Meirion Ellis-Jones in Aberystwyth is a great example of the funding that we can provide for smaller developers at a local level; encouraging local business and stimulating economic growth wherever possible.”