The trust planning to transform Llanelly House in Llanelli, South Wales, into a new community heritage centre has been handed a £3.4m funding boost by the Heritage Lottery Fund (HLF).

Carmarthenshire Heritage Regeneration Trust (CHRT) is behind the £4.9m restoration of the Grade I-listed building, which has been planned for 10 years and will form part of the wider regeneration of Llanelli town centre. Despite the scheme being an unsuccessful finalist on the BBC's Restoration programme in 2006, the HLF funding will now enable extensive external and internal restoration work to get underway on the 18th century house.

The new heritage centre, which is expected to be completed in January 2010, will boast an exhibition and interpretation space, a café-restaurant and a dedicated area for community use, including training and meeting facilities. CHRT is working in partnership with a number of local groups on the scheme, including Llanelli Historical Society, Llanelli Community Heritage, Llanelli Access Group and the Welsh Polish Association, as well as Llanelli Town Council (LTC), Carmarthenshire County Council (CCC) and Trinity University College.

Dan Clayton-Jones, chair of the HLF Committee for Wales and Trustee for Wales, said: "Restoring this wonderful house and opening its doors for local residents and visitors to experience, learn and enjoy will help boost further regeneration in the area. "This is a great opportunity for local people to get involved with their town's past and join the team of active volunteers who are making this project happen for the benefit of Llanelli's future."

LTC leader Carl Lucas added: "The long-awaited green light for the release of the HLF's generous funding means that final preparations can now be completed to enable the restoration work contract to start in earnest, and the sooner the better." It is hoped that the Llanelly House restoration scheme will enhance plans for the regeneration of Llanelli town centre, which includes a major refurbishment of the town's library, the multi-million pound The Works scheme and the new Eastern Gateway.

CCC leader Meryl Gravell said: "Llanelly House will be a catalyst to rejuvenate Llanelli town centre. The county council is extremely happy that the HLF has now released its funds to breathe economic life back into one of our most historic buildings for our communities to enjoy."