PROPERTY HOLDINGS
REPORT TO MINISTER
Assignment of Development Agreement : Cool Waters Limited and Dandara ( Sandringham ) Limited- Site of Catherine Quirke House, St Helier
Purpose
To approve the grant of the Public’s formal consent in order to permit a proposed assignment between Cool Waters Limited and Dandara (Sandringham) Limited (”Dandara”) in relation to a development agreement pertaining to the above site.
Background
In accordance with P.98/2003 a development agreement was entered into by the Public dated 2 February 2005 with Sandringham Investments Limited and Cool Waters Limited. The agreement effectively provided that in exchange for the property known as “Catherine Quirke House”, the Public was to receive, upon completion of the scheme, 5 no. one bed. flats, a 1500 sq.ft ground floor unit (to operate as a medical centre) and a sum of £47,000 towards fitting out costs.
Current Situation
Though the demolition of Catherine Quirke House (and the balance of the site) was completed early 2006 progress on site appears to have slowed. A request has presently been received from the developer; Cool Waters Limited to assign its interest in the development agreement to Dandara. This entails the sale of the development site itself (incorporating The Sandringham Hotel, 8 Gloucester Street and 2 Patriotic Place) to Dandara, as well as the transfer of all contractual rights and liabilities, without amendment, from Cool Waters Limited to Dandara.
The Development Agreement provides that neither Sandringham Investments Limited, (also a party to the Agreement), Cool Waters Limited nor the Public shall assign or otherwise transfer the benefit or obligations of the Agreement or any part thereof without the prior written consent of the other. Assignment by Cool Waters Limited to Dandara will therefore require the prior written consent of the Public and Sandringham, which company has agreed to the proposed assignment.
Since there shall be no amendment to the terms of the agreement, in particular the timescale within which the developer is to provide the Public with the said facilities, mentioned above, the proposed assignment to Dandara is not considered to be prejudicial from the Public’s viewpoint.
Recommendation
It is recommended that the Minister approves the grant of formal consent by the Public to allow a proposed assignment between Cool Waters Limited and Dandara (Sandringham) Limited in respect of the above development agreement dated 2 February 2005 between Sandringham Investments Limited, Cool Waters Limited and the Public, with the Public’s reasonable professional fees being met.
Written By: Neil Sproston
Principal Valuer/Estates Surveyor
Signature …………………………
Authorised By: Paul Tucker
Assistant Director of Property Holdings
Signature ………………………… 14 July 2006