Management of Major Property Transactions: Learning from the proposed acquisition of Lime Grove House

Background

The need for a replacement police headquarters was identified in 1999. A feasibility study and option appraisal in 2005 led to a planning application for a different site that was abandoned in 2007.

Following a new options appraisal, Jersey Property Holdings (JPH) made a conditional offer for Lime Grove House (LGH) in March 2010. Ultimately, in August 2011, the vendor accepted an offer from another party. The States subsequently embarked on a project for a new build headquarters, for which planning consent was given in July 2013.

There was significant concern about the failure of the transaction. A Corporate Services Scrutiny Sub-Panel was convened to consider it and referred it to the then C&AG. The C&AG undertook significant work and reported his findings in May 2012…

Scope

This review considers the management of major property transactions, focussing on the proposed procurement of LGH as a headquarters building for the States of Jersey Police, what has happened subsequently and the lessons to be learnt.

Conclusions

Any project can fail. In the case of LGH, weaknesses within the States at the time, increased the risk of the failure of the transaction.

Some improvements have been made since, but more needs to be done. There is a need for:

• a consistent and systematic approach across the States for the management of major projects from start to finish; and
• a consistent framework across the States, which sets out the roles and responsibilities of Chief Officers and Ministers in relation to the management of major projects.