Sale of Aviemore

WQ.9/2025

WRITTEN QUESTION TO THE MINISTER FOR INFRASTRUCTURE

BY DEPUTY K.M. WILSON OF ST. CLEMENT

QUESTION SUBMITTED ON MONDAY 27th JANUARY 2025 ANSWER TO BE TABLED ON MONDAY 3rd FEBRUARY 2025

Question

"In relation to Aviemore and its intended sale to the States of Jersey Development Company (SoJDC), will the Minister advise the circumstances of the sale, to include the following –

1. why it was agreed to sell the property for £1.5 million (half of its January 2024 estimated value);
2. whether a higher price could be secured;
3. the details of the advice that was received, if any, to proceed with the sale at this price;
4. the names of those involved in the decision-making process and the basis of their support for the sale;
5. the reasons, if any, for the urgency of the sale;
6. the costs incurred in putting the property out to tender; and
7. the number of bidders who completed the tender process and the success criteria which secured the bid by the SoJDC?"

Answer

1. The property will be sold for more than £1.3 million (see R.11/2025) as the sales agreement includes an overage clause that will realise additional value paid to Government, to be determined by the scale of an approved development.
2. A higher price is expected to be realised subject to planning permission being secured, and the scale of development being known.
3. The property was valued independently and marketed by a local property agent in the open market to secure the best bid and offer. Having undertaken this process, the offer from the States of Jersey Development Company was the highest value bid, and Ministers were advised accordingly.
4. In September 2021, the Council of Ministers agreed to the disposal of the Aviemore site so that the full value of the revenue released from the sale of the site could be used to fund the Endowment Fund to benefit Care-Experienced Islanders. The site was subsequently approved in the Government Plan to be sold by Jersey Property Holdings and developed for open market housing to specifically support the Fund. The decision to proceed with the sale to the States of Jersey Development Company was made by the Regeneration Steering Group.
5. This has not been an urgent sale. As referenced in the answer to part (d), the decision to sell Aviemore was first made in September 2021. As referenced in part (a) of the question, the property was valued in January 2024, 12 months before a sale was agreed.
6. The cost of the sale was set with the agent to be 1% of the final agreed sale price (including marketing fees).

7. There were six bids received and SoJDC were selected for having the highest value bid and the receipts paid to the Government of Jersey in the shortest timeframe.