A multi-million programme to convert landmark city centre buildings into new homes is under way.

Newport City Council and the Seren Group have joined forces to ensure the transformation of a vacant property on Cardiff Road into affordable apartments.

It is the first project to begin with help from the Welsh Government’s vibrant and viable places regeneration funding won by the council earlier this year.

Newport City Council was awarded £14.988m towards the £60m city centre project and this is part of the overall £250m investment now taking place in the city centre.

Occupying an extremely prominent position on Cardiff Road, adjacent to the Royal Gwent Hospital, the building has been empty for many years and had become something of an eyesore as well as a focus for anti-social behaviour.

The £1.5m conversion will provide 15 affordable homes; 11 one bedroom and four two bedroom apartments. All the properties will be available for rent or for people to purchase a share of the ownership of their home. People with local connections can apply via the council’s home option website www.homeoptionsnewport.uk

Development of training and employment opportunities formed an important part of the building contract and Craig Wilford, aged 19, who is one of the apprentices, was also there to celebrate the launch. He is employed by Willis Construction.

Councillor John Richards, cabinet member for regeneration and development, was joined by Kathryn Edwards, Charter Housing corporate director, and Darrell Bolton, group commercial team director, of the Seren Group.

Councillor Richards said: “This is a fantastic project to begin the vibrant and viable places programme as the Seren Group will be providing homes for those who need them, opportunities for young people like Craig and will breathe new life into this derelict building.

“We have recognised for a long time that fundamental change was required to secure the future of the city centre and that would involve a different mix of uses, including residential. Our successful bid to the Welsh Government means that over the next three years, working with the private and third sector, we will be able to realise that ambition.”

Kathryn Edwards said: “We’re delighted to be involved in this exciting project to restore this lovely old building to its former glory, while also being able to provide high quality apartments at affordable rents for people on lower incomes”.

Newport’s impressive bid was one of only three to be awarded the full amount requested.

In a change to previous improvement schemes, the funding for a series of projects has already been allocated and a programme has been drawn over the next three years.

The council will work with the private and third sector to transform some key properties, mainly converting them into new homes but there will also be space for some business start-ups.