Public 'needs to know more' about Manx Development Corporation plans, says MHK

Treasury-backed company records losses of £448k

An MHK has shared his concerns after a property development company owned by the Isle of Man Treasury recorded a loss of almost half a million pounds last year.

The Manx Development Corporation – which was created to regenerate brownfield sites across the Island – says it was expected because it’s not yet completed any developments.

The first due to come to fruition is the transformation of the former nurses home on Westmoreland Road in Douglas which is currently under construction.

MDC Chairman Sean Gilbert has described 2023 as a ‘significant year’ for the company which also made a loss, of £179,000, in 2022.

In the financial accounts, which will be presented to Tynwald next week, he said: "As would be expected for a property development company that has not yet completed any developments MDC made a loss for the year of £448k.

"We expect revenue from our first development to come online during the 24/25 financial year.

"It remains the objective of the board to over time become profitable and to create a dividend stream to our shareholder the Isle of Man Treasury."

The MDC adds it also carried out a number of ‘work packages’, requested by a government steering group, in relation to ‘several significant sites’ in Douglas over 2023.

These, it says, will provide ‘much needed, high quality, residential accommodation’ as well as commercial space.

A £50 million ‘funding line’ from Lloyds was also finalised last year which can be extended to £100 million.

The MDC says whilst early work on any proposed developments is funded by the taxpayer the construction phases would be funded from that loan facility.

However Douglas Central MHK, and former infrastructure minister, Chris Thomas told Manx Radio he believes the public needs to have more information about the plans ahead:

You can view the financial documents HERE.