There has been a “noticeable increase” in interest from businesses wanting to move into the final International Finance Centre block, according to the taxpayer-owned company that will build it.
While the Treasury Minister had said in November that building was delayed owing to challenges finding a tenant, Jersey Development Company said this week that it expected the government-approved threshold for starting construction would soon be met and it was delighted that Chief Minister Lyndon Farnham had backed the project.
“I have asked the Minister… to bring forward plans”
Last week, Deputy Farnham told the Chamber of Commerce: “Given the importance of a competitive and growing international finance centre, I have asked the Minister for External Relations and Financial Services, Deputy Ian Gorst, and the Jersey Development Company to bring forward plans to build the final IFC building this year.
“It is essential we send a clear message about our intent on growth.”
This final and fourth building, called ‘IFC2’, will complete a border around Trenton Square formed by the other three IFC buildings, which line sections of Castle Street, the Esplanade and the north-western slip road leading to the underpass roundabout. It received planning permission in September 2020.
Whereas with JDC’s residential developments, 25% must be pre-sold before construction can begin, the rule for its commercial developments is different.
With these, the value of the completed building – including pre-let and unlet space – must exceed the costs of constructing the development, so the level of pre-let is not a fixed percentage and will depend upon rental levels, investment yields and build costs.
“It is vital that Jersey has the right infrastructure”
In response to Deputy Farnham’s endorsement, JDC chief executive Lee Henry said: “There has been a notable increase in interest in the next IFC building [IFC 2] since the end of last year. The interest is from businesses either expanding and/or lease expiries that enable a relocation to better quality accommodation.
“The government is also aware of this, and we were delighted that the Chief Minister highlighted the Government’s support to advancing IFC 2.
“It is vital that Jersey has the right infrastructure to support its primary industry and having high-quality office accommodation that enables businesses to operate efficiently and effectively is critical to the success of the industry and Jersey’s economy.
“To date, the IFC has delivered 200,000 sq ft of best-in-class office accommodation across three buildings and 100% of this office accommodation is let. Commercial agents regularly report multiple interest when space in the IFC comes available.”
He added: “We are in the process of obtaining up-to-date build costs and an updated independent valuation of the future completed building in order to confirm the level of pre-let required on IFC2, so I am unable to confirm that the threshold has been met at this stage.
“However, given the marked increase in enquiries, we anticipate this being achieved very shortly.”
At seven storeys, and with 13,250 m2 [142,641 sq ft] of total floor space, IFC2 will be the tallest and overall largest of the four IFC buildings.
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.
