Response to JAG's misinformation 21/5/18 - Horizon Development
Jersey Development Company (JDC) would like to correct further misinformation being spread by JAG on 21 May 2018.
As has been stated in yesterday’s Jersey Evening Post (21/5/18) by the current Minister for Treasury & Resources, JDC’s joint venture with Groupe Legendre has been discussed since last October and follows a decision taken that month. The Corporate Services Scrutiny panel had copies of the confidential report that accompanied the decision of the proposed joint venture with Groupe Legendre. Like other developers moving to Jersey, Groupe Legendre have set up local subsidiaries and will pay tax on their profits.
The joint venture route is one of the procurement methods JDC is specifically allowed to follow under P73/2010 (JDC’s constitutional documents) that was approved by the States Assembly when the Proposition was debated in 2010.
JDC has presold more than 70% of phase 1 in just six months. If the Horizon apartments were overpriced, no one would be interested in buying them. We confirm that contrary to what JAG has said, none of the apartments have been sold to overseas investors and JDC is not marketing the units to overseas investors. Furthermore, JDC limits the number anyone can purchase to two units per block and we assist first-time buyers by allowing them to pay their 10% deposit in monthly instalments over the construction period.
JDC notes that other developers are guaranteeing fixed returns for buy-to-let investors on their own developments for the first two years of ownership which clearly encourages investors to purchase. JDC has not provided any guarantees. Whether units are sold by flying freehold or share transfer, local investors can buy these apartments as they can any other apartment or house in Jersey.
It is claimed by JAG that Horizon apartments are smaller than Castle Quay, this is incorrect. The smallest units at Castle Quay are 36 square metres whereas the smallest at Horizon are 41 square metres.