Co-Op not part of investment talks on Leale's Yard housing site

The landowner says it will update members in May after the States of Guernsey decided not to pursue an investment of up to £35M in the Bridge site.

Guernsey's senior committee, Policy and Resources, says that it 'has not been possible to reach suitable terms as to investment.'

But Omnibus, which is the development company, says Guernsey's government has missed an opportunity to kick start the development of affordable housing at scale.    

The sum of public money involved was sizeable, at up to £35M, and Leale's Yard was seen as key to the wider Bridge regeneration.

In July 2024 Policy and Resources said that it was committed to the project as a housing provider and that it was reassured over the style of development, modern, modular flats:

"The objective of its efforts to support the development at Leale's Yard and enabling flood defences at the Bridge is to bring homes on stream sooner. The Committee is satisfied at this stage that the States' interest in purchasing these units can continue."

But the head of P&R, deputy Lyndon Trott, says in the intervening nine months things have changed:

"We all know and recognise that housing is arguably our number one priority, but it remains essential to carry out the necessary checks and balances to ensure taxpayer funds are invested sensibly with clear and tangible benefits for the community.

"This project has now been progressed as far as the States can invest, having prioritised significant staff and considerable financial resources to help to try and achieve an affordable solution."

The private sector developer, in what was supposed to be a public private partnership, is Omnibus Investment Holdings Ltd, which has well known island entrepreneur Charles McHugh as a director.

He and co director Jeremy Rihoy have blasted P&R for missing a 'golden opportunity' by not investing in Leale's Yard, and warn there is not a queue of investors willing put up to £100M into housing in Guernsey.

Mr Rihoy says they purposely changed the design of the flats from modular to a more traditional build and says they were offered to the States at an attractive, below market price

Charles McHugh says he's deeply disappointed that the public private partnership has faltered:

“The reasons we have been given were based upon the 'shifting sands of politics.'

"We do not understand what that means but it is surprising to hear that there are other higher priorities.

"It is deeply disappointing given the urgent need for investment in infrastructure via this major residential housing project, that this private initiative cannot now be progressed."

The Co-Op says it cannot comment because it was not part of the discussions.

As the landowner of Leale's Yard it says it will update members at the annual meetings held in the islands in May.