ASSEMBLY Economic development minister Andrew Davies has approved plans for a partnership with the private sector to deliver up to £150 million of office and manufacturing space across Wales.

Until now, the Welsh Development Agency has delivered property in areas where private developers were reluctant to invest by spending its own money or encouraging private developers to do so through grant aid.

The new scheme, called the Welsh investment Strategic Partnership, envisages a partnership between the WDA and a competitively-selected private partner in which the capital cost of developing property would be borne totally by the private partner in return for long term leases on the property by the WDA.

The agency would then sub-let the premises to new or expanding businesses.

After the absorption of the WDA into the Assembly, the latter will take over the lease.

Andrew Davies said: "This is a ground breaking approach. It will unlock a significant volume of new investment in business property and multiply the impact and benefits of public resources."

The initial deal will be for projects worth £50 million to be delivered over two years, with an option for a further £100 million worth of projects over a further three to five years.

The result will be more than one million square feet of new property for Wales.

The WDA claims the list of projects to be undertaken has not been finalised but it expects Welsh regions which badly need high quality new property to achieve significant benefits.

Advertisments will be placed this month inviting interest from developers, builders and financiers.