South-Wales based property company Waterstone Estates has bought half an acre on the Swansea waterfront for £9.2m from the Welsh Assembly Government.

Tesco and Whitbread will be tenants for the planned mixed use commercial development.

Waterstone Estates is planning 63,000 sq ft of commercial space to include a 132-bed hotel for Whitbread Group, as well as a restaurant with views of the Prince of Wales Dock.

A 4,500 sq ft unit has been pre-let to Tesco Stores Ltd for its Tesco Express convenience store format

The scheme aims to create 120 local jobs and is being funded by Allied Irish Bank in Cardiff.

Ieuan Wyn Jones, Welsh minister for the economy and transport said: ‘It does send out a strong vote of confidence and a signal that Wales is a place to do business. It also illustrates that high quality projects like SA1 continue to be an attractive proposition for developers and attracts high quality investment.

‘These new facilities on SA1 will benefit local residents and businesses and create jobs during the construction phase as well as the operational phase.’

SA1 is a £400m flagship development by the Welsh Assembly Government which is transforming a disused dockland area into a vibrant new quarter.