The Prince of Wales is to buy his first home in Wales which he plans to use when he and the Duchess of Cornwall are visiting the country.
Charles' estate, the Duchy of Cornwall, is buying the Llwynywormwood estate, near Llandovery, Carmarthenshire.
Clarence House said Charles had been keen for the duchy to buy property in Wales for some time.
The property, which needs renovation, may be let to holidaymakers when the prince and the duchess are not there.
The Duchy of Cornwall has exchanged contracts with the vendors of Llwynywormwood with completion of the deal set for the end of March 2007.
Clarence House said the property will be used regularly by Charles and Camilla when they are in Wales.
The duchy will apply for planning permission for the property to be used as occasional holiday lets.
The Llwynywormwood estate is made up of a ruined mansion and several other buildings overlooking an 18th Century country park.
The 192-acre site includes 40 acres of woodland, a walled garden and the remains of a lake.
Prince Charles is reported to be keen to take advantage of local expertise when renovating the property and hoped the work could be used as an opportunity to train young people.
The duchy covers the cost of the prince's public and private life
Llandovery estate agent Les Probert, who has valued Llwynywormwood recently, said it was a small ex-coachhouse from the now semi-derelict original estate, set in almost 200 acres of rolling parkland.
He said the property was currently rented out to local farmers and had planning for a "sizeable lake".
"Undoubtedly in Llandovery and the surrounding area house prices will rise," said Mr Probert.
Royal commentator Richard Fitzwilliams said the opportunities for conservation and organic farming on the estate would appeal to the prince.
The purchase, he added, was "symbolically significant" because although he is the Prince of Wales, Charles has until now not owned a property in the country.