JDC sells IFC 5
The second building constructed at the International Finance Centre has been sold by the Jersey Development Company (JDC) for £47.6m reflecting a yield on the rental income of 5.75% setting a new local benchmark for this type and size of investment.
Construction of the 69,178 sq. ft, Super-Prime Grade A office building was completed in August last year and sold to a local resident and property investor on 24th July 2019. The sale has generated a net return (land and profit) for the benefit of the Island of *£10.6m, exceeding JDC’s original projection of £9.1m.
IFC 5 provides centrally located, highly efficient, flexible working office space over six floors and has been rated ‘Excellent’ by BREEAM environmental standards. The building is currently 90% let on long leases to blue-chip tenants with a further 5% in legal hands.
Lee Henry, JDC’s Managing Director said: “IFC 5 generated significant interest from potential purchasers as a result of the quality of covenants of occupiers, the lease term and the superior quality of the building in terms of design, flexibility and specification. JDC will continue to deliver a flagship office district that is providing the highest quality office buildings in Jersey. We’re pleased the IFC is raising the standards of St Helier’s office quality and obviously delighted with IFC 5’s successful sale which shows continued confidence in the local market.”
JDC appointed HSBC to finance the scheme, Camerons as the construction company, Carey Olsen as its legal advisors and D2 Real Estate and JLL as IFC 5’s sales agents.
The building was designed by MJP Architects and Waterman Group and was delivered on schedule reaching practical completion in August 2018.
Under the direction of the States’ Regeneration Steering Group, profits from IFC 5 will be used to benefit the island by funding public infrastructure or the acquisition of further development sites that will generate enhanced returns to benefit the people of Jersey – financially, socially and environmentally.
* The net return breaks back to a net land value of £4.25m and a profit of £6.35m reflecting a healthy return on total cost of 18% and an annual return on equity of 27%.