Herm investment under threat over lease row
Thursday 3rd October 2013, 12:15PM BST.
TREASURY’S ‘inappropriate’ price demands for an extension of Herm’s lease agreement means the island will miss out on key infrastructure investment, its tenant has warned.
Herm Island Ltd chairman John Singer said he had given up hope of a 21-year extension to his tenancy because the department deemed an independent price tag of £440,000 for a new contract to be ‘politically unacceptable’.
Mr Singer signed a 40-year lease in 2008 – for a sum believed to be significantly less than its £15m. asking price – and claimed he had yet to make a profit.
‘I love Herm – when I came to the island I came to really make a success of it,’ he said. ‘Now I feel that I have failed, and that isn’t a pleasant thought.’
Treasury admitted it had ignored independent evaluations for the extension – one of £450,000 arranged by Mr Singer and one of £430,000 that it had arranged.