A PRIVATE company hoping to help revive Sark’s real-estate offering has submitted a cash bid to purchase an extensive estate on the island previously owned by the billionaire Barclay brothers.
The Sark Property Company – run by the island’s Seigneur, Christopher Beaumont, and Sarnia Asset Management chief executive Swen Lorenz – has submitted a cash bid for the portfolio owned by a trust of the late Sir David Barclay.
The bid, which does not include Brecqhou or its castle, is valid for 30 days and has no conditions.
Sark Property Company proposes to purchase and improve a portfolio principally consisting of 80 residential properties, four hotels, 20 commercial properties, 139 acres of land, and several development sites.
These properties make up about 20% of Sark’s real estate.
Earlier this month, the company registered its prospectus with the Guernsey Financial Services Commission, paving the way for investors to commit funds as it looked to raise £30 million to fund the deal and some £15m in investment over the next few years.
“It’s taken a lot of work to get to the point of submitting a bid, but that time and effort has been well spent building an investment proposition that would give Sark a better future,” said Mr Beaumont, who alongside being a director of the Sark Property Company is the 23rd Seigneur of Sark.
“Our bid is backed by cash, our investment case is solid, and our intention is to create the right environment for Sark to thrive. Should the bid be successful, we will engage with all tenants of properties within the portfolio to listen to their aspirations for the future.
“We will always be open to discussion and look forward to working with Sark’s residents for mutual benefit.”
The offer reflects what the directors of the Sark Property Company regard as market value for the estate, plus a premium.
Sark Property Company has retained the Guernsey office of Savills to structure and front its bid for the estate.
Knight Frank, the advisor of the current owner, has confirmed that the company’s bid will be passed on to the trustees of Sir David Barclay’s estate for their consideration.
If the estate is sold, then the transaction will be subject to Sark’s Property Transfer Tax of 7.5%, representing an immediate seven figure boost to the government’s funds.
Mr Lorenz said: “Our offer for the Barclay estate is in place for a limited time.
“Even though there can be no guarantee that a transaction will take place, we are confident that our bid will make for a compelling proposition.
“If a transaction is agreed, we will be looking to work with all Sark inhabitants and businesses, including the owners of Brecqhou, to help build a successful, resilient Sark.”
