A castle once at the heart of a failed plan for a theme park is being lined-up for another development.

Developers want to restore Pencoed Castle, near Llanmartin, and turn it into offices and 12 executive homes.

Proposals to turn the castle into Legend Court theme park caused controversy, with the scheme's backers, who claimed it would include film studios and create 17,600 jobs, clashing with opponents concerned at the environmental implications.

The plans finally bit the dust after Newport council rejected a planning application in 1999.

The castle is the remains of a fortified, mid-16th century Tudor manor house built by Sir Thomas Morgan.

Residents want the castle restored but say access to the site along narrow lanes is inadequate. The council has received 93 letters of objection to the latest planning application by Morspan Holdings.

Carl Jefferson, chairman of the Old Hamlet of Llanmartin Residents Association, said: "Those houses will be the thin edge of the wedge.

"We don't want development on this site. There are road safety and conservation concerns as well."