TREASURY AND RESOURCES DEPARTMENT
PROPERTY HOLDINGS
Property Transaction for Ministerial Decision - Minister for Treasury and Resources
The Old Sail Loft, Gorey Pier, St Martin –
proposed three year lease to Gavroche Limited
PBA 0356
Background
The Old Sail Loft retail unit is leased to Gavroche Ltd, the last formal contract being for a nine year period from 29 September 1997 to 28 September 2006, with the final annual rental being £12,800. The lessee has been ‘holding-over’ on the lease since then.
The property, including the former marine workshops and stores to the rear, was included in Property Holdings’ 2006 disposal plan, which was subsequently approved by the States.
In order to secure the best value for the site, an architect’s scheme was produced with a view to gaining planning consent prior to tendering the property for sale on the open market.
The scheme produced was not considered to achieve the best value for the site and therefore a revised scheme for residential development on the rear part of the site is being drafted. It is anticipated, subject to planning consent being gained, that the site will be sold in mid 2009.
It is therefore proposed to formalise the continued occupancy of The Old Sail Loft with Gavroche Ltd for a three year period deemed to have commenced on 29 September 2006 and to terminate on 28 September 2009.
Proposed heads of terms of lease
Lessor: The Public of the Island of Jersey
Lessee: Gavroche Limited
Demised Premises: The ground and first floor retail unit measuring approximately 989 sq ft, with associated storage/
office room measuring 275 sq ft, known as The
Old Sail Loft, Gorey Pier, St Martin.
Use: The use of the premises is retail with associated storage/office area.
Term: A three year term deemed to have commenced on
29 September 2006 and to terminate on 28 September
2009.
Rent: £12,800 per annum payable quarterly in advance on
29 September, 29 December, 29 March and 29 June.
Rent reviews: None
Lessee repairs: To repair and maintain the interior of the premises’
including the services, to a standard consistent with
that prevailing at the commencement of the lease.
Lessor repairs: To keep the exterior of the premises in a wind and water
tight state.
Buildings’ insurance: The lessor is to insure the building.
Public Liability
Insurance: The lessee is to hold public liability insurance for not less than £2,000,000 and shall indemnify the lessor against all claims arising from the lessee’s occupation of the premises.
Alterations: The lessee shall not alter the premises without the prior
approval of the lessor.
Sub-letting/Assignment: The lessee shall not be permitted to sublet the premises
or assign the lease.
Termination: Upon termination of the lease, the lessee is to remove all
its fixtures and fittings and to make good any associated
damage to wall, floor and ceiling surfaces.
Parish Rates: Lessor - foncier rates, lessee - occupier rates.
Recommendation
It is recommended that the Minister grants a new three year lease to Gavroche Limited for The Old Sail Loft, Gorey Pier, St Martin, deemed to have commenced on 29 September 2006 and to terminate on 28 September 2009, at an annual rental of £12,800 per annum with no rental reviews.
Written By: Philip Ahier
Signature …………………………
Authorised By:
Signature ………………………… 17 September 2008