A project to build new creative arts business units at Aberystwyth University's arts centre is set to be extended after it received a funding boost from the Welsh Assembly Government.

Eight units, which were designed by London-based Heatherwick Studios, will be used as studios and offices for artists and are expected to be completed by early 2009. But a £200,000 grant unveiled by the Welsh heritage minister, Alan Ffred Jones, last month will enable the project's co-ordinators to build additional units, as well as providing further opportunities for artists wishing to join the centre's Artists in Residence programme.

Three of the units will be reserved for a succession of resident artists over three-month periods as part of the three-year initiative, which has been funded by Esme Fairbairn Foundation and Wales Arts International. The development agency for theatres and arts centres in Wales, Creu Cymru, will also occupy one of the units. Its director, Richard Hogger, said: "Being a creative organisation, it seemed only natural that we relocate to a creative hub where we will be working alongside like-minded companies and individuals."

Funding for the project has also been provided by the Arts Council for Wales Lottery Fund and the university.