Green light for second IFC sale

Wednesday 13 February 2019

Jersey's Treasury Minister has given the go-ahead to the sale of the second International Finance Centre building – but officials are remaining tight-lipped over when, or how much it will be sold for.

A newly-published report shows that the States of Jersey Development Company (JDC), which was set up using public funds but remains independent from the government, asked for permission to sell IFC5 last month.

Treasury Minister Deputy Susie Pinel then approved the request on 30 January.

Two weeks have passed since that date, but JDC officials have declined to reveal how close a sale may now be. Express approached JDC for their comments yesterday, but is yet to receive a response.

The news comes three months after the first building – IFC1 – was sold for £43.7million, which JDC said resulted in profits of £10.9million.

Pictured: The 'SOLD' listing for IFC1 on the D2 website.

IFC1 was marketed and sold by D2 Real Estate, who have also been handling the rental of office space within IFC5.

According to their website, 3,000sqft on the ground floor and 3,800sqft on the second floor remains.

Despite not yet being 100% let yet, JDC management believe it to be an “opportune time to dispose of the asset”, according to the Ministerial Decision report outlining the conditions of the Treasury Minister’s approval.

It said that the Minister agreed to the request provided that the sale price is equal to or in excess of one laid out in a written report to her.

Pictured: IFC5 is not yet 100% let.

That number has not been released into the public domain, with a second condition of the Minister’s agreement being: “The minimum price and the sale price to remain confidential until the sale completes.”

The funds, according to Deputy Pinel, should then be used to repay outstanding loans in respect of IFC5, with the remainder being used to finance further developments, “in particular the new Esplanade Quarter underground public car park.”

JDC have plans to continue the International Finance Centre complex, but last month admitted that their original vision was “likely” to change significantly.

The States-backed company had originally planned to construct six buildings on Esplanade carpark land in a bid to create a “financial district” in the heart of St. Helier.

Pictured: The original plans were for six IFC buildings.

This, they said, would respond to a high demand for “Grade A office space” and help attract new business to the island, as well as helping generate returns for the States.

But calls from campaigners saw the previous Environment Minister, Deputy Steve Luce, launch a review of the ‘Esplanade Masterplan’ – a scheme dictating a future vision for the area – featuring input from key stakeholders, including campaigners and JDC officials.

The review, which has continued under the new Minister, Deputy John Young, raised concerns over what was considered to be a “too large and inactive” layout.

In a letter to Planning acknowledging potential changes to the scheme as part of a request to extend planning consents for a further three years, JDC’s Managing Director Lee Henry wrote: “JDC wishes to deliver a well-designed and thought through Waterfront that is high quality in terms of the built environment and public realm and provides a mix of uses creating new places for living, working and leisure. 

“We believe the current discussions concerning the EQ [Esplanade Quarter] masterplan, which involve all key stakeholders, are advancing productively and we anticipate will provide the planning framework to deliver this important district for St. Helier.”