A REGENERATION company has confirmed it applied to the Regional Growth Fund for £10m to help fund a 400-property development, creating 270 jobs.

Carlton & Co, based in Newton Aycliffe, County Durham, submitted the bid for the project, which could attract an additional £30m in private sector institutional investment with the aim of achieving a £100m portfolio within seven years.

The company, which aims to find institutional investment for housing and regeneration projects, is seeking the RGF funding to help finance a project to build 400 low carbon, affordable dwellings in the North-East.

Norman Peterson, company director, said they believed the project would provide a much-needed boost to the North-East construction sector, and support the Government's housing policy.

"We are cautiously optimistic about our round three funding application bid," he said.

"With the uncertain future prospects for public sector subsidy it is imperative that we gain support for private sector funding.

"Our application aligns closely with the region's identified housing objectives and would provide significant economic benefits arising out of the jobs created within the construction sector and throughout the supply chain.

"We await the bid decision with anticipation for a positive result."

A recent strategic Housing Market Assessment 2012 carried out in the Tees Valley identified a requirement for 936 affordable dwellings per year across four of the Tees Valley Boroughs.

The RGF is a £2.4bn fund operating across England from 2011 to 2015. It supports projects and programmes that attract private sector investment to create economic growth and sustainable employment. The fund endeavours to assist areas and communities which were previously dependent on the public sector to make the transition to sustainable private sector led growth and prosperity.

The first two rounds of the RGF allocated a total of £1.4bn of funding, potentially delivering 330,000 jobs across the UK.

The company has recently opened an office in Berkeley Square, London, with the aim of meeting increasing demands from some of the UK's major pension funds, who have stepped up investment in the residential sector.