Sale of former South Hill Offices (FOI)

Request

The Government of Jersey published its State of the Estate report (R.63/2024) this month. Appendix 2(a) of the report (Disposals by the Public 2023) shows that the Former South Hill Offices were valued at £3.775m and that the property was sold to the Jersey Development Company (JDC) for £10.50.

A

Why was the Property not sold to the JDC for at least the stated valuation figure?

B

Why was the Property not openly advertised and therefore its true value tested in the open market?

Response

A

The initial agreed property sale value was set out in a development agreement with the States of Jersey Development Company (‘SoJDC’). 

The agreement also set out the future returns to Government of Jersey in the form of a profit share of the residential property sales once the site has been developed and sold.

B

The SoJDC is owned by the Government of Jersey and is the preferred developer for open market and commercial developments and has provided high returns to the taxpayer on other sites such as College Gardens where they it is able to share all the developer profits.

The decision to sell the site to SoJDC was endorsed by the Regeneration group and the Ministerial decision was then lodged with the States Assembly for 15 working days in accordance with Standing Order 168, Land Transactions. Please see the link below. 

South Hill - former office site, St. Helier: Sale for residential development (gov.je)​​