A new £10m Property Development Fund has been unveiled by the Welsh Government.

The initiative will help support smaller scale property ventures in the country and provide a much needed boost for the construction industry.

The scheme, which is funded by the Welsh Government and managed by Finance Wales, has been created in response to the strong demand from both small and medium size construction companies that are unable to access finance from traditional sources.

The Fund will operate on a commercial basis and, by recycling investment returns, typically within 18-24 months, produce an 'evergreen' fund with the potential to provide up to £30m of available finance over five years.

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This could create an additional benefit to the Welsh economy of around £19m, creating up to 900 direct and indirect jobs and safeguard in the region of 700 jobs.

Economy Minister Edwina Hart said: "The Welsh Government is committed to supporting business growth and we listen to business. This Fund meets a real need to help small-scale property developers access much needed finance to fund development in both the commercial and residential markets.

"It was set up in response to a funding gap identified by Finance Wales and will help kick start development in smaller scale property ventures. Construction is one of our key sectors with the potential to make a significant impact on the economy. The industry plays a vital role in delivering a vibrant economy and a quality environment.

"A stagnant construction market impacts on society in many ways, from a reduction in affordable homes for first time buyers, to businesses unable to find new premises. Construction projects, for business, public and residential purposes, can be a significant driver of local regeneration, visibly improving local amenities as well as providing a significant number of jobs."

(JP/MH)