Rhyl was initially built as a seaside resort

The �1.25m grant awarded to Rhyl is designed to protect and improve many of the buildings in the town which date back to the late 19th century.

The money is one of the fund's Townscape Heritage Initiatives (THI), and will be paid to Denibighshire County Council.

The proposed area that will be redeveloped as part of the project intersects three conservation areas, where many of the buildings have suffered as the result of poor maintenance and low investment.

The project is central to plans to regenerate the town after decades of high unemployment and low income levels.

"Rhyl is a lovely seaside town with buildings that date back more than 120 years," said Jennifer Steward, Heritage Lottery Fund manager for Wales.

"Unfortunately, the area had become quite run down, and the grant will be used to breathe new life into it," Ms Stewart added.

"By improving the built environment of the town, we hope to make it a more attractive place to live and work, encouraging businesses to return to the town centre."

Museum grant

A grant of �986,500 has also been awarded to the National Museums and Galleries of Wales for the redevelopment of the Museum of the Welsh Woollen Industry, in Drefach, Ceredigion.

The money will be used to help conserve the Grade II listed buildings which house the museum.

It will also help to enhance facilities at the site, for the preservation and curation of collections and to improve access to visitors.

The total grants given to projects in Wales is �3,784,400.

Other projects to receive grants include Drybridge House In Monmouthshire, Sessions House in Usk and St Illtyd's church in Neath.