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The Sark Property Company is dropping its plans to buy some of the Barclay brothers land in the island.
The shock announcement came despite Sark Property Company having received binding commitments for investment from more than 100 investors.
CEO Swen Lorenz said he simply couldn't agree a price with the current landowner.
"Our offer of £20m was, we believe, a fair reflection of the portfolio’s value with a small premium on top," he said.
"We worked closely with our advisor Savills Guernsey to calculate what the estate is worth, considering its current condition and wider factors like the challenging tourism situation for the whole of the Bailiwick. However, the asking price of the current owner was so much higher that there was no way to bridge the gap."
Pictured: Sven Lorenz is an entrepreneur living in Sark.
The current owners - the trust of the late Sir David Barclay - now plan to do some work on the estate themselves, said the Seigneur, who has also been involved in the failed negotiations.
"This is not the outcome we had hoped for," he acknowledged. "The opportunity to secure a future for Sark, which was clearly supported by a large majority of the population, has been lost for the time being."
Christopher Beaumont, who is a Director of the Sark Property Company, said their plans offered the best opportunities for Sark but he will work with anyone for the betterment of the island.
“I enjoyed the chance to consult world-renowned experts like The King's Foundation, the Eden Project, the Duchy of Cornwall, the International Group and many others, and bring them to Sark to see the island and our vision for its future. It was abundantly clear from our encounters that the charm of Sark was easy to sell, all could see what we were trying to achieve and were willing to help us deliver.
“The trustees who are in charge of this portfolio have said that they are going to further develop the estate and this is a pledge that Sark desperately needs to see fulfilled. I, and many other Sark residents, look forward to hearing the plan and seeing the trustees make overdue improvements to their estate. I still believe that Sark Property Company’s proposition was the best one for the future of Sark, but will of course work with anyone who wants to give our island and its people a proactive and sustainable plan for their futures.”
Pictured (l-r): Christoper Beaumont, the Sark Seigneur and Sven Lorenz.
Having secured millions of pounds worth of investment, the Sark Property Company has now informed its financial backers that it will not make use of the money they committed.
Its board has decided that it will wind down its activities but keep the legal entity in place.
The Sark Property Company says it may revisit the situation in 2026, but only under specific conditions.
For now, as the Seigneur said, the opportunity has been lost.
“Sark needs a strategy for its future and if the opportunity came up again to negotiate for the estate we would be interested, but only under specific pre-agreed conditions such as a binding commitment to sell at that price or an auction process," added Mr Lorenz. "We’d also be looking for official support from Chief Pleas, to make it clear that there is openness to work with those who want better for the island.”
Mr Lorenz said he, the Seigneur, and others involved in the project had received lots of moral support as well as financial for which they are grateful too.
"We thoroughly enjoyed working with the multitude of collaborators, partners, and service providers who supported us in this endeavour. Many residents of Sark and Guernsey approached us to applaud our efforts to help Sark move forward. This type of transaction doesn't always pan out, but we are pleased that we tried to make a positive difference for the island."
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