IFC2 project commencement and delays

WQ.412/2025

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY S.M. AHIER OF ST. HELIER NORTH

QUESTION SUBMITTED ON MONDAY 3rd NOVEMBER 2025 ANSWER TO BE TABLED ON MONDAY 10th NOVEMBER 2025

Question

"Further to the Jersey Development Company Limited: Annual Report and Accounts 2019 (R84/2020), published on 18th August 2022, and the statement by the Managing Director that they envisaged "IFC2 being delivered over the next 5 years" (p.11), will the Minister advise why the project has not yet commenced and detail the reasons for the delay?"

Answer

The States of Jersey Development Company's (SoJDC) 2019 Annual Report and Accounts were signed off in May 2020, shortly after the start of the global COVID-19 pandemic. At that time JDC had successfully completed, let and sold IFC 1 and IFC 5 and market demand for Grade A office space was encouraging.

The statement on page 11 of the report, under the heading "Future" noted that:

"This schedule was developed pre-COVID-19 and, subject to how the pandemic unfolds, as well as advancing development on KOS (Key Open Space) 1, 2 and 3, the Company will continue to promote and advance the IFC and envisages IFC 6 and IFC 2 being delivered over the next 5 years."

Since then, SoJDC has delivered IFC 6 which was completed in 2023 and is now fully let. The successful delivery of IFC 6 contributed to the release of older office stock, which is now being refurbished and re- let, offering businesses a choice between a new-build office or a refurbished office.

In relation to IFC 2, the project has received full planning and building consent. Construction is, however, contingent on securing an anchor tenant to occupy of at least 25% (25,000 sq.ft.).

SoJDC has appointed D2RE as its sole letting agent for the IFC development and they continue to engage with key prospective tenants in the local market. To date D2RE have successfully secured lettings for SoJDC with 15 businesses covering over 200,000 sq.ft. of accommodation in IFC 1, IFC 5 and IFC 6.

Since 2023, SoJDC has had interest for IFC 2 and has provided proposals to two interested parties. In both cases, the prospective tenants decided to remain in their existing premises or relocate to a refurbished office. In addition, SoJDC has anecdotally been made aware of three major businesses having recently renewed their leases to remain within their existing premises and are carrying out extensive refurbishment of those premises.

Relocation decisions are driven by a range of factors including cost, operational efficiency and timing. While new-build offices offer significant benefits, businesses must weigh these against the financial and logistical implications of moving.

SoJDC continues to promote IFC2 and remains ready to proceed once a suitable anchor tenant is secured. The delivery of IFC2 remains a priority. It is also worth noting that IFC 6 remains the most recent new build office development in the local market.