19 October 2015
An independent valuation of the planned Jersey International Finance Centre (JIFC) has reported that the estimated aggregate value of the finished development is £332 million. With development costs estimated at £237 million, there is a forecast return to the public of more than £90 million on completion.
The Treasury and Resources Minister, Senator Alan Maclean, instructed officials in May to obtain an up to date valuation of the JIFC. Global property consultants, DTZ, were commissioned to undertake the work. Recent concerns about contamination costs and their impact on the viability of the project have prompted publication of this information to reassure islanders and prospective tenants.
The latest DTZ valuation was undertaken in accordance with the Royal Institution of Chartered Surveyors’ regulations and attributes an estimated aggregate value of £332 million to the completed office development.
The cost of developing the offices, public car park and public areas is estimated at £237 million. This figure incorporates the cost to the Jersey Development Company of dealing with the contamination. On completion it is estimated that the development will provide a return to the public of some £95 million. That’s in addition to the public car park and infrastructure that will be provided, which has a value of more than £10 million.
Senator Maclean said “It was important to commission an independent valuation to verify the projected outcome of this important project for Jersey. I hope the findings of this valuation will reassure islanders that the scheme remains financially viable in the light of recent contamination concerns.
“We are developing this finance centre, through a phased approach, for the benefit of islanders. We need to maintain a thriving economy that can fund all the services we need – health, education, essential infrastructure – and to do that we need to provide the facilities that existing and new businesses demand. The Waterfront development is also important for the regeneration of St Helier and we will take changing demands and risk mitigation into consideration as we plan each phase.”
The Finance Centre will ultimately comprise six office buildings with underground parking, and an underground public car park with 520 spaces beneath a public park. This represents Phase 1 of the Esplanade Quarter Masterplan. Plans for future phases will be clarified as the project progresses.
Senator Maclean added “Masterplans are not rigid. They provide guidance for planning authorities around the world to set objectives for developing specific areas. They need to be flexible frameworks that evolve and respond to changing circumstances.
“We need to adapt intelligently to a global economy that is changing rapidly due to technological developments. Phasing the development is a sensible approach that will allow us to meet Jersey’s economic and social needs as they develop over the coming years.”