This project was designed to replace the derelict 1960's 'Billybanks' housing estate with a new residential development to be called Penarth Heights.

The development by Crest Nicholson was proposed to consist mainly of houses, interspersed with low rise apartment buildings and to include a proportion of affordable housing.

Whilst there was general approval of the proposal to demolish the old estate and replace it with something more in tune with its important position overlooking Cardiff Bay, as with any project of this type, the proposals were not without controversy.

Concerns were raised regarding the impact of traffic from the new development on the already congested routes in and out of Penarth and questions were asked on how the money raised for the Council from the scheme should be spent.
Some community projects had already been identified and Crest Nicholson gave assurances that it would work closely with the local community to ensure people's aspirations and concerns were taken into account.
There were also concerns expressed by the emergency services authorities regarding the difficulties in accessing the site. All of these issues had to be satisfactorily resolved if the project was to proceed successfully.

Edward Cullinan Architects masterplan for Penarth Heights  received planning permission on 13th December 2007 and, given the dilapidation of the old complex and a worrying increase in vandalism and theft from the largely unoccupied buildings, it was felt to be in everyone's interest that the scheme, which was estimated to take 5 years to complete, proceeded without further delay.

However, in mid-2008, the project appeared to be in difficulties when the developer appeared unable to reach agreement with existing residents still living at the site. Compulsory purchase orders (CPOs) were then served on two remaining homeowners but in early 2009, the Vale Council withdrew from the compulsory purchase order public inquiry at short notice, leaving serious doubts over the future of the project. The worsening economic climate contributed to the project remaining in limbo throughout the rest of 2009.

But in January 2010, the Vale Council announced that, following lengthy negotiations with the developer, the project was back on track - with a full commitment from the developer. David Huggett, managing director of Crest Nicholson, said “Crest Nicholson is fully committed to bringing forward this important project and to playing a key role in the ongoing regeneration of the area."

Finally, after what appeared to be a never-ending saga, demolition of the old flats began on 14th June 2010, and in July 2011 the new Penarth Heights showhouse was officially opened by boxing legend Joe Calzaghe.

Development of the rest of the site is now continuing.