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%.
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 24 July this year. 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 office space over six floors and has been rated Excellent under construction industry environmental scheme BREEAM. 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 quality of the building. JDC will continue to deliver a flagship office district that is providing the highest quality office buildings in Jersey.”
JDC appointed HSBC to finance the scheme, Camerons as the construction company, Carey Olsen as its legal adviser and D2 Real Estate and JLL as IFC 5’s sales agents.
Collas Crill acted for the local resident and property investor involved in the acquisition, led by Partner Pamela Doherty and Of Counsel Fiona Wilson.
The building was designed by MJP Architects and Waterman Group and was delivered 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.