ONE of the oldest cinema buildings in Gwent is set to be renovated in a multi-million pound development, its owners say.

The Grade II listed Palace Cinema in Risca has "two major household names" interested in taking it over, according to the building's owners, Johnsey Estates of Newport.

The landmark cinema was once the showpiece of the town centre in Risca but over the years it has fallen into a terrible state of disrepair and is believed to be rat-infested.

Many residents of Risca have written to the Argus recently to complain about the eyesore.

Details are vague at this early stage but the company director of Johnsey Estates, Lee Johnsey, said planning permission for the renovation of the Palace Cinema will be submitted to Caerphilly borough council with the next month or so.

"Johnsey Estates are close to finalising a planning application for the redevelopment of the site," said Mr Johnsey.

"Another use has been identified which we believe will contribute substantially to the economic and attractiveness of the high street in Risca."

He said: "There are two substantial clients - which are both household names - interested in the building and we are really excited about it because it will be a huge and fabulous project.

"The building is in an appalling condition and it will take a lot of hard work. "Cadw will be involved and we will be looking to retain the front of the building and restore it to its former glory."

When asked whether renovation would begin sometime this year, Mr Johnsey said: "It is impossible to predict that but we would like to start work sooner rather than later."

Mr Johnsey also categorically denied that pub chain JD Wetherspoon is interested in acquiring the Palace - contrary to local rumour.

Risca councillor Stan Jenkins said: "It's about time something was done about the Palace.

"There have been talks on getting it developed since the 1980s and it has never come to fruition.

"The place is virtually falling down and there will come a time when it will have to be demolished because it is too unsafe so I look forward to seeing to whatever comes before the council."