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A multi-million pound deal to save Merthyr’s YMCA building looks set to get the green light this month.

The Grade II-listed building, which is one of the town’s most famous landmarks, has been lying derelict for decades and has often faced the threat of demolition.

But now the Carmarthenshire Heritage Regeneration Trust has stepped in to try to buy the building from its private owner.

The trust is confident a deal can be reached this month and hopes to transform the YMCA into a teaching facility and office space.

The building, which is in the Pontmorlais area, was built in 1911 and has a striking red brick and terracotta facade.

The YMCA cost £8,400 to build and the official opening was on October 5, 1911, by Mr Mervyn Wingfield.

The stated purpose of the building was to provide a place where youths and young men could congregate for healthy amusement, recreation and health giving exercise.

It has been described as crowning the top of the town and is one of the few Victorian and Edwardian buildings of architectural note to have survived years of economic decline and planning decisions.

The building was the first to be designed by famous Welsh architect Sir Percy Thomas, along with Ivor Jones, and is in Edwardian Baroque style.

Claire Deacon, chief executive of the Carmarthenshire Heritage Regeneration Trust, said: “At the moment, we are going through the grant process and are hoping a deal will be done this month.

“Following that, we will seek to do a full restoration of the building.

“We are hoping it could be used as a teaching facility in partnership with Merthyr College with some office space also available.

“At the moment, lots of people work from home in the area but need office space occasionally. This would be ideal for that sort of thing.”

Although the building is in an appalling condition – almost the entire roof has collapsed – an independent survey has found that the shell is sound and can be secured if some of the upper tiers of masonry are removed.

Miss Deacon said the initial money to buy the building will hopefully come from the Townscape Heritage Initiative.

Following that, the trust will apply for grants from the Heritage Lottery Fund, Welsh Assembly Government funding and any European cash available to restore the building.

Miss Deacon added: “We looked into the project because this is an iconic Welsh building, particularly because of the involvement of Sir Percy Thomas.

“It’s an important building in an important town and we want to be involved in preserving it.

“We believe we need to raise £5m for the full project, which we predict will take three years, so there is lots of work to be done.”

In 2005, the YMCA faced the threat of demolition, but in 2010 the Heritage Lottery Fund was due to invest more than £1m in the building to turn it into a community focal point. However, this project never got off the ground.

Merthyr Tydfil AM Huw Lewis welcomed the news that a “gem” of the town now looks set to be saved.

He added: “Our historical buildings are a unique asset to Merthyr Tydfil and the Pontmorlais area in particular has considerable potential to showcase this magnificent heritage.

“I’m delighted that this project is already benefiting from the support of the council and the expert advice and assistance of the Carmarthenshire Heritage Regeneration Trust and I look forward to seeing the YMCA restored for the benefit of future generations.”