The Manx Development Corporation may eventually sell the former nurses’ home on Westmoreland Road.
Treasury Minister Dr Alex Allinson revealed in Keys that the site could be sold alongside the controversial proposed Westmoreland Village.
Now called Thie Clagg, the recently opened building underwent an £11m conversion to create apartments and commercial units.
Dr Allinson confirmed: “Ultimately, MDC will look to recover the development and other costs by the sale of its investment in Thie Clag.
“This option will likely be investigated further following the completion of the Westmoreland village project.”
He stressed this approach would prevent MDC becoming “a de facto landlord of multiple properties.”
Lifespan
The Minister projected a 50-year lifespan for the 1953-built property after its refurbishment, stating: “With stabilised concrete and a rebuilt roof, we’re confident it will meet modern standards for decades.”
However, Chris Thomas challenged this, citing a 2022 assessment that gave the structure just 25 years.
Mr Thomas also said the scheme and the MDC was not all it seems, telling members: “We’re in a Media Development Fund situation here.”
However Dr Allinson dismissed this and said he didn’t recognise the figures Mr Thomas was quoting in relation to Thie Clag.
Julie Edge also questioned why the current 5% rental yield fell short of MDC’s 7% target.
Dr Allinson acknowledged “a yield lower than commercial developers would accept” but emphasised the need for central Douglas housing.
Final costs, including £500,000 in demolition expenses borne by other departments, will be published in MDC’s next annual report.
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