Communities Minister Gordon Lyons has announced the approval of the North West Regeneration Fund, a significant financial boost of up to £10 million aimed at revitalising buildings within the Londonderry Historic City Conservation Area.

This fund, which will be delivered as Financial Transaction Capital loan funding over the next five years, is specifically designed to address properties that the private sector has been unable to regenerate due to a lack of commercial viability.

The fund will be managed by a third-sector partner, the Londonderry Inner City Trust, an organisation established in 1976 with a strong track record in regenerating the city, including landmark projects like the Tower Museum and Bishop's Gate Hotel.

Minister Lyons expressed his enthusiasm for the initiative, stating: "I am delighted to be able to announce the North West Regeneration Fund and in particular the partnership with the Londonderry Inner City Trust who have a considerable wealth of experience and expertise in regenerating the city. It is anticipated this new fund will make a significant contribution to the regeneration of strategic properties within the Historic City Conservation Area." The Minister highlighted that this new fund arrives at an "exciting time for the city," coinciding with other major investments. These include public realm works funded by the Department for Communities (DfC) adjacent to the historic city walls, investment from the Derry City & Strabane District Council City Deal, and the planned expansion of Magee University. Furthermore, the Department for Communities is working with the Western Health and Social Care Trust on a planning application to redevelop the Fort George site into a new health hub and mixed-use development.

"All of these interventions are serving to enhance the city, making it more attractive for those who live there and those who choose to visit and stay there, providing a significant boost to the local economy," Minister Lyons added.

Archdeacon Robert Miller, Chair of the Inner City Trust, welcomed the news, calling it a "transformative moment for our city." He said, "We are proud to partner with the Department for Communities to help unlock the potential of historic buildings that have long stood dormant. This investment will breathe new life into the heart of Derry, strengthening our heritage, supporting our economy, and ensuring our built environment serves the needs of future generations."

Archdeacon Miller extended his "heartfelt thanks to Minister Lyons, the team at the North West Development office and the Strategic Investment Board for making this innovative funding happen." Financial Transaction Capital (FTC) is a form of UK government funding provided for loan and equity investments in entities outside of government budgetary boundaries, such as businesses or charities. It must be repaid and is expected to generate a financial return. If successful in its pilot in Derry/Londonderry, the fund may be expanded or rolled out more widely across Northern Ireland.