A £9 million project to convert the old railway Goods Shed building and adjoining land at Hood Road, Barry Waterfront into a mixed-use scheme, including a shipping container village and apartment complex has been given the go ahead.

The Vale of Glamorgan Council has reached agreement for developers Loft Co to transform the structure into office space, retail units, restaurants and a coffee shop.

Sitting alongside the Barry Tourist Railway, there will also be a new five-story residential block on the site operated by Newydd Housing, offering 42 new homes, 23 of which will be affordable housing units.

The area will contain a flexible events space for use as an outdoor cinema, farmers' market and pop-up street food zone.

Loft Co are the same company behind the successful renovation of the nearby Pumphouse into the Hangfire Southern Kitchen restaurant, Academy coffee bar and other businesses.

The Goods Shed dates back to the 1880s and like the Pumphouse sits in the Innovation Quarter, a 19-acre urban area and joint venture between the Council and Welsh Government.

Cllr Neil Moore, Leader of the Vale of Glamorgan Council, said: "This imaginative urban regeneration project is a great example of collaboration between the public and private sectors, brought about by developer Loft Co, the Vale of Glamorgan Council, Welsh Government and Newydd Housing Association.

"This is a fantastic concept that will breathe new life into the Goods Shed, an important local historic property and create much needed jobs, homes and leisure facilities for the benefit of the wider community. I very much look forward to the development starting on site soon."

Developer Simon Baston said: "Loft Co are absolutely delighted to have completed on the Goods Shed and the land surrounding it in Barry.

"In collaboration with the Vale of Glamorgan, Welsh Government and Newydd Housing Association, Loft Co will produce the first new urban high street of the 21st century in the UK.

"There will be huge opportunity there for many SME type businesses to grow inside the incubation space, restaurants, offices etc all inside affordable and sustainable units.

"More importantly it is a scheme that has been designed and will be built with the community in mind and offers a permanent farmers' market, cinema screen, outdoor gym, theatre/ comedy club etc, which will all be used by the local community with full engagement with Loft Co, owners at all times and the public.

"Loft Co is proud that the scheme is in a very sustainable position with a low carbon footprint and all space has been taken up to date generally by local operators at all levels that see Barry now as a thriving, independently minded society that has the community at its core."

Paul Roberts, Chief Executive at Newydd Housing Association, said: "We are really excited to be providing the accommodation element of this innovative scheme.

"This mixed-use development has something for everyone; opportunities for work, leisure and places to live, it will help continue the transformation of Barry Waterfront."