L'Eree Bay Hotel sold to real estate developer
L’EREE Bay Hotel has been sold to a property developer but it will be business as usual for the time being.
Randalls Brewery has sold the 36-bedroom hotel together with the grounds and car park to the RED fund, a real estate developer backed by private investors with Channel Islands’ links.
The hotel, including the bars and Teddy’s Diner, will continue to operate as normal.
'After a comprehensive review of our properties, it was clear that L’Erée Bay Hotel needed significant investment in order to have a viable future,' R W Randall managing director Ian Roger said.
'It made sense for us to look for a buyer who had the funds and desire to redevelop the site and to use the proceeds of the sale to invest in our other hotels and eateries.
'We are delighted that the site will continue to be locally owned and that the new owners had no objection to the hotel remaining open. This will allow the operator to honour their bookings and continue to operate Teddy’s Diner which has been a huge success since it opened this year.'
RED fund was established in 2018 and focuses on commercial and residential property development opportunities in the Channel Islands.
In December 2018 it made its first acquisition of three office properties in Jersey and recently announced that it had bought the 14.67 acre former Data Park site off Route Militaire.
RED fund chairman Andrew Haining said he was delighted that the fund had purchased its second site in Guernsey.
'The fund brings together a small group of like-minded investors who either live in the Channel Islands or have very close local links and want to use their collective investment to identify, realise and maximise development opportunities.
'Many of the ones currently being considered share the same characteristics as the L’Eree Bay Hotel site in that investment is required to unlock its potential. Our hope is that those with potential will ultimately deliver real benefit for the Channel Islands.'
Mr Haining said that the board and its advisers would now be looking at how the L’Erée Bay Hotel site could be redeveloped given its prominent west coast location and close proximity to areas of ecological and environmental importance.
Watts & Co negotiated the deal between the two parties. Managing director Jo Watts said it was pleasing to see the sale go through court.
'Matching a buyer with a vendor for a property which is not even on the market can be challenging.
'[We have] been working with the RED fund team since it was established and it’s fantastic to see the commitment they have to the property market and investment they are prepared to make in the Channel Islands,' she said.