Local investor buys IFC5 for £47.6m

Monday 05 August 2019

A local resident and property investor has bought the second International Finance Centre building for £47.6m, generating a profit of £6.35m, it has been confirmed.

The government-backed Jersey Development Company (JDC), which completed construction of the six-floor 69,178sqft office space last August, said that the sale had come following “significant interest from potential purchasers."

Treasury Minister Deputy Susie Pinel released the building – which is not yet fully let – for sale in February.

At the time, officials remained tight-lipped over when, or how much the building would be sold for. 

The sale finally completed on 24 July. JDC did not name the purchaser.

Pictured: The sale of IFC5 has resulted in profits of £6.35m.

Taking into account both land and profit, JDC said the sale has generated a “net return… for the benefit of the island of £10.6m”, which they said exceeded their original projection by £1.5m. 

According to a footnote in JDC’s announcement, the benefit figure includes a “back to a net land value of £4.25m and a profit of £6.35m”, which was described as a “healthy return on total cost of 18% and an annual return on equity of 27%."

The profits will be reinvested into public infrastructure or the acquisition of further development sites under the direction of the government’s Regeneration Steering Group, JDC said. 

News of the sale of IFC5, which houses SANNE and Big Maggy’s bicycle and coffee shop, comes eight months after IFC1 was sold for £43.7m to the ‘Klesch Family Office’. 

90% of the second finance building has been let on long leases, 5% is “in legal hands”, while the final 5% remains unlet. 

Lee Henry, JDC’s Managing Director, commented: “IFC 5 generated significant interest from potential purchasers as a result of the quality of covenants of occupiers, the lease term and the superior quality of the building in terms of design, flexibility and specification. JDC will continue to deliver a flagship office district that is providing the highest quality office buildings in Jersey.

“We’re pleased the IFC is raising the standards of St Helier’s office quality and obviously delighted with IFC 5’s successful sale which shows continued confidence in the local market.”