States buy one of Guernsey's largest brownfield sites for housing

The States and the Channel Islands Co-op have agreed a deal to progress the long-awaited development of Leale's Yard.

The States has agreed to buy the majority of the Leale's Yard site for £4.5m, aiming to start demolition work within 12 months.

The site has lain derelict for years, with the Co-Op keen to progress its development.

In this partnership deal, the Co-op will retain a section of the site to develop for housing and has committed to starting this work within 18 months.

The plans to use the site for both commercial and housing will remain, though the overall layout may change from the planning permission already in place.

The Co-op unveiled plans in April 2022 for the re-development of the Leale's Yard.

In 2022, plans were approved to develop Leale's Yard by constructing 338 residential units alongside a large Co-op shop and a multi-storey car park.

READ: Leale's Yard multi-million-pound redevelopment approved

Earlier this year, the previous Policy & Resources committee decided not to pursue a £35m investment in the Bridge site..  The Co-op was not involved in those negotiations with private sector developer Omnibus Investment Holdings Ltd.

Following its purchase of part of the site  - due to be finalised on 14 August, the States will first improve infrastructure in the area, including new roads - furthering development submitted for the Saltpans Site.

The States' purchase of the land has been described by Guernsey's senior committee as 'good value for money for the taxpayer'.

Deputy Lindsay de Sausmarez, President of the Policy & Resources Committee, said action will now progress at pace:

"This is a great way to begin the new term, and full credit must go to the former Policy & Resources Committee, the staff at States Property Unit and our new partners, the Coop, for seizing the opportunity and agreeing a deal that works for everyone.

We've long recognised Leale’s Yard as strategically important for the regeneration of the Bridge, the delivery of critical infrastructure and much-needed additional housing.

"The new P&R Committee is fully supportive of the decisions taken to date and is keen to prioritise its progress this political term.

"The first priority is to improve the transport network in the area, both around and through the site, as that’s crucial for its long-term success in addressing the traffic impact.

"We are very keen to deliver the best mix of housing that the island needs, alongside other aspects that will support the regeneration of the Bridge, and won't waste any time in moving this forward."

Mark Cox, CEO of the Channel Islands Coop said the agreement would enable the retailer to focus on its core business.

"We will now focus on re-investing in our Guernsey stores and ensuring we continue to deliver value for our members every day. Our thanks to the Policy & Resources Committee and the States Property Unit for their swift and decisive actions in proposing this agreement."