Property development grant

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email: scu@gov.wales.

Wales

Property Development Grant

The relevant powers are Sections 60, 62 and 71 of the Government of Wales Act 2006 and Section 1 of the Welsh Development Agency Act 1975 (as amended).

One of the Welsh Government’s economic roles is to address the property challenges that stand in the way of delivering government policy under Programme for Government (PfG) and a more prosperous and fairer Wales.

Property forms part of the ‘Wales economic offer’, and the availability of the right site or property can be fundamental to enabling indigenous businesses to expand or winning a project in competition with other regions of the UK as well as international competitors.

The current gap between supply of and demand for modern sites and premises is well recognised. The Economic Mission under PfG clearly references the importance of ensuring adequate supply of employment sites and premises.

The WG Property Delivery Plan (PDP) sets out an ambitious and challenging aspiration to deliver up to 300,000 square feet per annum of new employment premises across Wales on a 3 year rolling programme. PDG is the principal delivery tool under the PDP.

The PDG is a discretionary grant that provides aid to the private sector for the development of sites and premises including the provision of infrastructure and utilities, or the extension, renovation, refurbishment or conversion of existing commercial sites and premises and associated environmental enhancements. Funding can be given for either speculative, pre-let or bespoke schemes where such development would not otherwise take place because of a deficit between the eligible costs of the project and the value of the completed development.

Welsh Government

The scheme will be open to all enterprises in Wales excluding those active in the following sectors:

• Coal sector
• Steel sector
• Synthetic fibres sector
• Shipbuilding sector
• Energy generation, distribution and infrastructure
• Transport sector and the related infrastructure

• Manufacturing
• Wholesale and retail trade; repair of motor vehicles and motorcycles
• Construction
• Information and communication
• Financial and insurance activities
• Real estate activities
• Professional, scientific and technical activities
• Administrative and support service activities
• Other service activities

From 1 December 2025 to 31 December 2035.

£100,000,000

All subsidy awarded under the scheme will be awarded by way of grants.

PDG is a property support mechanism used by the Welsh Government to support Jobs and Business growth in Wales in line with wider initiatives such as Enterprise Zones, City Regions and Sector initiatives. Assessment of eligibility will be based upon the value of the project to the Welsh economy and based on several factors including (but not exclusive to) the number and quality of jobs which may be accommodated, sector, sustainability, location and design quality.

Use – Primary focus on Industrial (including warehouse) / Office development but any commercial use that supports job creation can be considered

Applicant – Developers, Investors, Contractors, Owner Occupiers, other land owners.

Location – All Wales

Interest in land – Freehold or a Leasehold Interest of a least 15 years or more.

Eligible expenditure – Site Investigations and Surveys, Acquisition costs of Land & Premises (lower of purchase price or Open Market Value), Demolition, Reclamation, Site Preparation, Infrastructure, Environmental management and enhancements, Fixtures and Fittings, Professional Fees, Finance & Developers Fee and a level of Developers Profit that is relevant for the project.

It should be noted all reported eligible expenditure will be subject to an assessment carried out by a cost consultant appointed by the Welsh Government to determine whether the expenditure is reasonable and value for money.

Exclusions – Owner Occupiers cannot claim a Developers Fee or Profit

The Welsh Government’s aid in the Property Development Grant is limited to the viability gap, i.e. the difference between the capital cost and value of the project.

The actual level of grant offered will seldom be the maximum possible. Subject to budget availability, it will be the lower of:

• the minimum level which is considered necessary to achieve the project subject to a maximum award of no more than 45% of the eligible costs of the project.
• the value of the project to the Welsh economy based on several factors including the number and quality of jobs, sector, sustainability, location and design quality

The aid beneficiary must provide a financial contribution of at least 25% of the eligible costs, either through its own resources or by external financing in a form which is free of any public support.

£8,000,000

For more information about applying for support under this scheme, please contact the Property team at Property.Infrastructure@gov.wales.

For more information about this scheme’s compliance with the Subsidy Control Act 2022, please contact: