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Information and public services for the Island of Jersey

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New Plan for States Property Portfolio

07 April 2006

Plans announced to get best value from States £1.6b property portfolio

The Council of Ministers' Strategic Plan is lodged in the States today (Monday 10 April) and includes proposals to make the best use of States property and generate more than £22 million pounds by 2011.

The Strategic Plan, proposed by ministers and first published five weeks ago includes increasing investment in services and infrastructure, to stimulate economic growth and enhance opportunities for Island residents. It will be debated by the States on 6 June.

When the Plan was first published, Chief Minister Frank Walker said it was time that Jersey demonstrated ambition and courage, to move confidently into the future. Today, he said: "We have promised the community a secure future and believe we should not be afraid of making appropriate investment to ensure that we achieve it. We have also promised the people of Jersey we will reduce States spending and make better use of our resources. This property plan gives a very clear example of how we are going to do this."

The Property Plan aims to ensure that land and property owned or leased by the States is appropriate for the services that use them. An appendix to the Strategic Plan, it aims to ensure that land and property owned or leased by the States is appropriate for the services that use them – now and in the future - and sets out four guiding principles:

  • Meet States’ current and future property needs
  • Ensure publicly-owned property is used, managed and maintained well
  • Buy property only when it contributes to States strategic or business objectives
  • Sell or get better value from property which doesn’t meet States’ objectives, or isn’t right for the service/s that use it
    • Since being formally established in January this year, Property Holdings has reviewed the entire States property portfolio - ranging from modern purpose-built office space to conversions of schools and residential accommodation. It conservatively estimates its worth at approximately £1.6 billion.

      The division has also assessed future land and office needs for States departments, proposed a more wide ranging review of States office space to see what savings can be made, and reviewed properties currently owned and used by the States to see if they are fit for purpose and best use is made of the site.

      As a result, it proposes that the best strategy – for the public purse and for States service delivery - is that in 2006 the States sells or leases nine sites in six parishes, including the former Jersey College for Girls. It also recommends a further eight sites, including Seaton Youth Club and fields bordering Howard Davis Farm, are sold or leased in future years. 12 additional sites, including Fort Regent, St Saviour’s Hospital and Overdale, Howard Davis Farm, D’Hautree and the Highlands campus, and East of Albert/ La Collette 2 should be subject to further review and options for the future recommended.

      The Property Holdings Division has set itself some tough targets. By 2011, it plans to have achieved revenue savings of £7.3 million and raised up to £15 million worth of capital – making a substantial contribution to the States £20 million savings target.

      It aims to do this by establishing a corporate approach to States property management; bringing the work currently carried out by many different departments into one, co-ordinated area to improve services and make considerable savings. From here it will manage the maintenance of all States properties centrally, with staff and budgets transferred from other departments. By September this year, it will provide a full range of property management services and hold an accurate record of all States properties. It will also have published proposals to seek States approval for Property Holdings to operate as a trading department in 2007.

      Next year the division will value and assess the performance of the entire portfolio to ensure it is getting the maximum value from it. Each year, the States Annual Business Plan will include a section on States property and Property Holdings will make recommendations for the priority order of capital projects related to building construction.

      -ends-

      Notes to Editors:

      Although it is being lodged today, the Strategic Plan consultation continues until 12 May. Copies of the Plan have been sent to around three hundred individuals in Jersey, and the Chief Minister, Senator Frank Walker, is also arranging to meet groups and organizations who want to hear more about the Plan’s objectives.

      Background

      The Property Holdings Division is part of the Treasury and Resources Department. It was set up following a States decision in June 2005. It is responsible for administering all States property assets (except social rented housing and property administered by trading bodies) and to modernise the administration and management of States property in order to make the most productive use of it.

      The Property Holdings Division formally took responsibility for States property on 1 January 2006 and is made up of the former Property Services Department and the States Architectural Services Division. This is an interim structure; it is planned that the division will become a trading department in due course, subject to States approval.

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      Facts

    • The States owns approximately £1.6 billion worth of property.
      • The States owns about 429,000 sq. ft. of office space on more than 30 sites.
        • As at January 2006, the States was leasing 27,000 sq. ft. of space from the private sector – that’s about 6 per cent of States office space.
          • By the end of 2006, the States will save about £100,000 in rent per annum by reducing the amount of space leased from the private sector by about 7,000 sq. ft.
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