The land adjacent to the hotel is currently let on a long lease to the hotel to provide alfresco dining facilities, an arrangement that will continue.
However, after being put up for sale by the SoJDC the land is to be sold for £975,000, with the money from the sale being used to help pay for the company’s development projects.
Details of the successful bidder have not been made public. However it is not the hotel, which was initially invited to buy the land but declined.
A ministerial decision signed by Assistant Treasury Minister John Refault authorises the SoJDC to assign the lease with the hotel, which has agreed to pay £54,593.51 plus annual increases for 41 years, to the new owner.
It also means the SoJDC can put together a new lease with the public for the remaining land at Weighbridge Square.
The report accompanying the ministerial decision says: ‘The land was marketed by BNP Paribas Real Estate (Jersey) Ltd and attracted four interested parties. Best bids were then sought, for which the highest offer was £975,000. Of the four investors who expressed interest, only two made bids, one for £900,000 and one for £975,000.
‘SoJDC advise that on an income basis, the remaining land at the Weighbridge is worth approximately £250,000 but believe this is misleading, given the open land is provided for mainly charitable events where no charge is levied by SoJDC. They note that regenerating the Weighbridge area cost the company just under £1.8 million in 2007, which has significantly improved the quality of the area for the benefit of the public.
‘SoJDC intend, for valuation purposes in the 2017 financial statements, that the remainder of Weighbridge Square will be disclosed at a value of £250,000, that overall, with the land being sold, creates a total value of £1.225 million, which would create a gain in the 2017 financial statements of £225,000.’