Developers hit pause on further IFC plans

Thursday 10 January 2019

The States of Jersey Development Company has pressed pause on plans to build another finance centre building, admitting that the previous vision for the area is now “likely” to change significantly.

The States-backed company had originally planned to construct six buildings on Esplanade carpark land in a bid to create a “financial district” in the heart of St. Helier.

This, they said, would respond to a high demand for “Grade A office space” and help attract new business to the island, as well as helping generate returns for the States.

Despite sparking protests from Waterfront campaigners, construction went ahead resulting in IFC1 and IFC5, which, despite promises from Ministers, ended up gaining tenants at a far slower rate than previously anticipated.

Pictured: The original plans were for six finance centre buildings.

This, in part, led previous Environment Minister Deputy Steve Luce to launch a review of the ‘Esplanade Masterplan’ – a scheme dictating a future vision for the area – featuring input from key stakeholders, including campaigners and JDC officials. 

The review, which is being continued by current Minister John Young, threw up concerns over the relationship between the buildings and their surroundings and whether a planned open area between each ‘IFC’ would be “too large and inactive”. 

But now it appears the JDC’s scheme may not be set in stone, with the company officially putting the brakes on further development on the IFC4 building. 

In a letter to the Planning Department, JDC Managing Director Lee Henry described “significant changes” to the Esplanade design plans as “likely”, adding that it would therefore “not be appropriate to progress the development of the… site at this time.” 

Pictured: The Environment Minister, Deputy John Young, is leading a review into how the Esplanade area should look.

Elsewhere in his letter he writes: “JDC wishes to deliver a well-designed and thought through Waterfront that is high quality in terms of the built environment and public realm and provides a mix of uses creating new places for living, working and leisure. 

“We believe the current discussions concerning the EQ [Esplanade Quarter] masterplan, which involve all key stakeholders, are advancing productively and we anticipate will provide the planning framework to deliver this important district for St. Helier.” 

The JDC have now asked for permission to extend planning consents they have so far obtained to develop the area for a further three years. The Planning Department is yet to provide its response. 

The news has been welcomed by the Jersey Action Group, who led protest efforts. In June 2015, over 1,000 islanders encircled the Esplanade carpark – the future site of the IFC buildings – in a show of disagreement with the development plans. 

Pictured: Islanders protesting against the development in the Royal Square in 2015.

Chairman of the Group, John Baker, commented: “We are pleased to see that SoJDC Managing Director Lee Henry has got the message and accepts that the plans for JIFC do not match the new aspirations of those parties involved with the new masterplan.” 

He continued: “Thanks, Lee Henry - we, at last, agree that the Finance Centre - in its current design, is not appropriate… We now look forward to working with you, Ports of Jersey and John Young and his team and other stakeholders in formatting a new Masterplan, which fulfils these noble desires.”

The news comes two months after the first building sold for £43.7million. 

Speculation about when – and indeed if – the Esplanade-based finance building would sell had been heating up since autumn 2017. In September 2017, former Treasury Minister Senator Alan Maclean stated that JDC was likely to see in the New Year with a sale, but this didn’t come to pass.

Pictured: IFC1 sold for over £40million in November.

In the end, it sold in November 2018, with the JDC claiming that the hotly anticipated sale generated more profit than initially expected, at £10.9million.

The second building, IFC5, remains to be sold.