The Auditor General for Wales has completed a detailed value for money study into the sale of publicly-owned land - including the site on Wonastow Road - by the Regeneration Investment Fund for Wales (RIFW).

He concluded that the Welsh Government and RIFW “cannot demonstrate value for money from the asset sale”.

The sale process was flawed because it was not supported by an independent valuation or open marketing; there were gaps in information and weaknesses in professional advice; and the land portfolio may well have been sold at below its market value.

The site on Wonastow Road was formerly owned by the Welsh Assembly and sold to a company in the Channel Islands for development. It is currently the subject of two planning applications for up to 370 houses and 6.5 hectares of land for industrial use.

He continued: “I am deeply concerned that the Welsh Government cannot provide public assurance that RIFW achieved value for money from the sale of its land and property portfolio. If some of the sites had gone to market at a later date, they could have achieved significantly higher prices and thereby generated greater funds for regeneration investment across Wales.

“Because the portfolio had not been actively marketed and the sale for £21.7 million was not supported by independent valuation, the Auditor General commissioned independent professional valuation advice. This indicated that the portfolio of property sold to South Wales Land Developments Ltd, (SWLD) could have realised over £30 million if the Welsh Government and RIFW had handled the disposal differently. However, RIFW’s structure and remit were not designed to facilitate the maximisation of potential sale proceeds.