The Manx Development Corporation made a loss of more than £178,000 in its first year.

Property development company MDC was set up in March 2021 with the remit of being the catalyst for the regeneration of brownfield sites.

It operates at arm’s length from its sole shareholder, the Treasury.

MDC has developed proposals for a number of prominent government-owned sites in Douglas including the former nurses’ home on Westmoreland Road.

It has also submitted plans for ‘Westmoreland Village’, comprising 133 new homes, including housing for key workers as well as office space, retail units and a community pavilion.

The company’s first-year accounts and directors’ report are due to be laid before the April sitting of Tynwald.

They show in the year to the end of March 2022, the company, entirely funded by share capital, had net assets of £990,478 after making a loss of £178,523.

Expenses during the year included £69,675 on wages and £50,203 on directors’ fees.

The directors’ report notes that revenue streams will only come on line once sites are redeveloped and become available for sale or lease

It states: ‘As at the statement of financial position date, the company was entirely funded by equity capital.

‘As development activity progresses this will change to a mix of equity and debt funding.

‘It is the intention of the company that, over time and through its development activities, it will generate retained earnings that may be remitted to its shareholder.’

MDC has previously said it has been negotiating non-government funding for Westmoreland Village and the former nurses’ home.

But this year’s Budget Pink Book notes that government reserves could fund future MDC projects.

It states: ‘The MDC board has identified several potential sites for which they would like to conduct feasibility studies in order to bring full business cases forward for consideration.

‘It is anticipated that the feasibility studies will be funded through the injection of further equity capital by Treasury into the MDC.

‘Where projects are to be taken into development, the MDC will be expected to seek loan funding on commercial terms, either from Treasury or from external sources, to finance any construction costs.

‘Any further equity or loan funding to the MDC will be considered as and when specific projects are identified and this has not been included within the 2023-24 budget.

‘This funding will be made directly from general reserves.’