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14% pay rise for JDC boss to £232k - but no States dividend until 2019

14% pay rise for JDC boss to £232k - but no States dividend until 2019

Monday 08 May 2017

14% pay rise for JDC boss to £232k - but no States dividend until 2019

Monday 08 May 2017

The Jersey Development company increased its revenue, its profits and the pay packet of its MD - but 2016 was a year in which no dividend was paid back to the States, and it appears there won't be one until 2019.

According to the 2016 accounts, the States-owned development company increased its profits from £897,104 to £2,033,320.

The company points out that those figures don't include profits from its development activities, which are only realised once leases are in place and/or sales completed. It says, "...the value of that activity is, however, recognised in the Group’s balance sheet, which has seen total assets rise from £58,256,003 to £85,434,639 in the year." 

Its Managing Director, Lee Henry, received a pay packet including a salary of £167,500, benefits totalling £1,885, a £37,800 bonus, and a pension contribution of £25,125 - in total a 14% pay rise on the previous year. 

SOJDC salaries

But the report notes that the JDC had agreed with the Treasury there would be no dividend paid to the States for 2016, and there won't be one until 2019 at the earliest:

"Given the level of pre-development expenditure on large real estate projects, the funding requirements for the delivery of public infrastructure in the Esplanade Quarter and the long lead-in times to realising receipts from real estate development, JDC agreed with its Shareholder that there would be no dividend paid in the year (2015: £1million). The next anticipated dividend to be paid by JDC will be in respect of the College Gardens development in 2019. All net receipts from the IFC development will need to be retained by the Company to fund the public infrastructure costs associated with the Esplanade Quarter Masterplan."

The JDC was established in 1996, and, according to its annual report, is, "...responsible for completing the development of the St Helier Waterfront and regenerating States owned property no longer required for the delivery of public services."

Its main project at the moment is the International Finance Centre on the Esplanade:

"JDC is committed to delivering a flagship office district that will provide the highest quality office buildings in Jersey with column free floor-plates offering occupiers complete flexibility on their fit-outs and having excellent levels of natural light that has been scientifically proven to improve staff well-being and productivity. 

"The IFC Jersey will create six standalone modern ‘Grade A’ office buildings totalling 470,000 sq. ft together with private car and bicycle parking under each. More than 50% of the site will be dedicated to new civic open space and a new 520 space public car park will be created beneath a public park."

Its also working on College Gardens - the re-development of the former Jersey College for Girls site off Rouge Boullion:

"Through the efforts of JDC, the former Jersey College for Girls building, which was a decaying asset, is being transformed into a modern and highly desirable residential community. The newly named College Gardens development is creating 187 new apartments, including open market and affordable properties. The development will not only return a healthy financial profit to the island but also makes a significant contribution to affordable housing, while redeveloping an iconic, landmark building that will help regenerate that part of St Helier."

The 2016 annual report says that negotiations have begun with the Treasury over re-developing two other States-owned assets at South Hill and St. Saviour’s Hospital. 

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