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The developer behind a £120m project to regenerate Broad Street has entered a “period of reflection” and is “considering the next steps” amid falling house prices, rising construction costs, and high interest rates.
Developers Le Masurier had gained planning permission to regenerate two acres of town into 238 apartments, a 103-room Aparthotel, restaurants, shops and a walkway linking Broad Street and Commercial Street.
But there were recent concerns that the development could be in jeopardy due to a rule which requires that 15% of its homes are “affordable” for islanders.
Pictured: The proposed view of the development from Charing Cross. (Le Masurier)
This requirement was introduced in January 2023, and requires development proposals involving 50 or more dwellings to include at least 15% of properties available for sale or occupation by islanders eligible for assisted purchase housing.
In a States Assembly sitting in May, Deputy Max Andrews asked Chief Minister Lyndon Farnham whether the 15% requirement could be reduced to allow the Les Sablons development to go ahead.
At the time, Deputy Andrews claimed that Le Masurier risked making "no economic profit" if made to abide to the rule.
But Le Masurier managing director Brian McCarthy has now confirmed that planning approval for the Les Sablons development has been received after reaching an agreement with Government on the required Planning Obligation Agreement.
The agreement – which was signed on 31 July 2024 – reiterates the requirement for 15% of the homes to be sold to first-time buyers.
Pictured: Housing Minister Sam Mézec is content for the scheme to continue as long as 15% of the units are sold to first-time buyers.
These units will be sold at a 15% discount from their open market value. The buyer pays 85% upfront, with the remaining 15% considered as deferred payment.
Only "eligible persons" – those registered on the Affordable Housing Gateway – can purchase these units.
However, the scheme applies only to the first sale of these homes. Subsequent sales of the units are not covered by the scheme.
The agreement also stipulates that the developer will have to pay £492,560 to secure improvements to the public realm and to walking and cycling routes, and make a contribution of £50,000 to secure the provision of open space and children's play areas.
However, the future of the development does not seem certain as Mr McCarthy also said that Le Masurier "is now in a period of reflection and considering the next steps" amid falling house prices, rising construction costs, and high interest rates.
He explained that "the world has changed" in the two-and-a-half years since the initial planning application for Les Sablons was submitted.
In a statement provided to Express, Mr McCarthy said: "Le Masurier is pleased to say planning approval for their Les Sablons development has been received after reaching agreement on the required Planning Obligation Agreement.
"However, the Les Sablons application has gone through an initial rejection, an appeal hearing with permission proposed by an independent planning inspector, for that decision to be overturned by the then Assistant Environment Minister, an appeal lodged through the Royal Court and the original Assistant Minister’s decision quashed because it was unlawful.
"Consent for Les Sablons comes two-and-a-half years after the planning application was submitted and the world has changed in that time period with falling house prices, double digit construction cost inflation and interest rates at a generational high.
"Le Masurier is now in a period of reflection and considering the next steps, which will include the discharging of all pre-development commencement planning conditions."
The £120m development plans continually hit headlines last year due to a long-running planning saga.
The initial Les Sablons application was refused by the Planning Committee – a panel of politicians responsible for granting or refusing applications – in December 2022.
Le Masurier then put forward an appeal and an independent planning expert said the development should be able to go ahead.
But Assistant Environment Minister Hilary Jeune nonetheless decided to reject it in a move that sparked significant backlash – including a controversial public statement from then-Chief Minister Kristina Moore expressing her extreme disappointment.
Pictured: An artist's impression of Les Sablons' central courtyard. (Le Masurier)
When Le Masurier then launched a further fight via the Royal Court, it was later confirmed that, following legal advice, Deputy Jeune would not be fighting the appeal and that she had accepted the decision was "unlawful".
The then-Infrastructure Minister Tom Binet later gave the green light to the development in December 2023, subject to a Planning Obligation Agreement.
One of the conditions of the Planning Obligation Agreement is to agree and Assisted Purchase framework with the Housing Minister.
In January, Mr McCarthy said that the cost of the scheme had risen significantly while they waited for a decision.
He added that there was no start date for construction of the Les Sablons development – and that timescales needed to be "reassessed" following the recent approval of the plans.
It was also confirmed that taxpayers would have to foot the bill for the developer's legal costs, but it later emerged that the full cost to the public purse was to remain a secret due to a confidential legal agreement.
At the time the Les Sablons plans were first launched, Express spoke to Mr McCarthy about the vision for Les Sablons and the wider regeneration of St. Helier...
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