Plans to construct a fourth International Finance Centre office block are in limbo until a major tenant can be found.
In 2019, the public-backed States of Jersey Development Company had set out an ambition to deliver the seven-storey IFC 2 building within five years.
At that time, market demand for high-quality office space was described as “encouraging”, with the developer having already delivered and fully let IFC 1 and IFC 5.
While Treasury Minister Elaine Millar this week maintained that the project “remains a priority” in response to questions from Deputy Steve Ahier over why it was yet to materialise, she noted that circumstances had since changed.
Construction cannot begin until JDC secures a business to take on at least 25% of the building, Deputy Millar said.
She went on to reveal that two local businesses had expressed interest in the office block – which already has planning permission – since 2023, but that both ultimately “decided to remain in their existing premises or relocate to a refurbished office”.
The Minister also said JDC had been aware of three major businesses renewing their leases and opting to carry out “extensive refurbishment” of their own premises, rather than relocate.
“Relocation decisions are driven by a range of factors including cost, operational efficiency and timing. While new-build offices offer significant benefits, businesses must weigh these against the financial and logistical implications of moving,” Deputy Millar said.
She added that the third IFC building – IFC 6, which was completed in 2023 – “remains the most recent new build office development in the local market”.
IFC 2 would complete the quartet of office buildings around the new £1m Trenton Square space, which this summer hosted major art exhibition ‘Bubbletecture‘.
According to marketing materials from sole letting agents D2RE, the proposed 100,000sqft block will offer up to seven different office spaces and include a “premium ground floor food and beverage offering, and private underground car parking and bicycle facilities”.
Rental prices will only be provided on application.
IFC1 was the first to be constructed, and was sold for £43.7m in 2018. The second, IFC5, was bought by a local investor for £47.6m in 2019.