Following a successful bid by the housing association, the Scottish Government's Innovation and Investment Fund will go towards the creation of 60 new houses in Birkdale Place.

The Scottish Government's contribution to the development is just over £2 million.

Forty of the £6.2 million project's properties are to be rented, and the remaining 20 will be made available through the shared equity model.

The 60 houses will accommodate more than 200 people, reducing pressure on the supply of social rented housing in Dundee.

Sanctuary Scotland director Gordon Laurie said: "Over the last 10 years, we have worked in partnership with Dundee City Council, the Ardler community and other stakeholders to deliver the very successful, award-winning Ardler Regeneration project. This funding will see the completion of the final phase of our redevelopment of Ardler.

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"Former council properties and dilapidated tower blocks have been replaced by more than 800 high quality homes, all of which are for rent, with another 60 properties in the pipeline. Ardler is now a place anyone would be proud to call home and we are delighted to get the chance to finish the regeneration."

Dundee City Council housing convener Cllr Jimmy Black said: "This is fantastic news for Ardler and this funding will help in another important component of the transformation of the area.

"Through its strategic housing investment plan, Dundee City Council has worked closely with Sanctuary Housing in this process.

"This announcement will mean more new homes for the area which will attract more people to become a part of Ardler's future."

Sanctuary Scotland's multi-million pound Ardler project has rejuvenated a once tired estate, and received major awards along the way, including the British Urban Regeneration Association award for best practice in regeneration.

Work on site is due to begin before April 2012 and should be completed by 2013.

(JG/CD)