The taxpayer has invested nearly £5 million in Manx Development Corporation.

This comprises £3.019 million in equity funding and a £1.7 million loan provided to the company by Treasury.

The equity funding has included some direct funding as well as the transfer of the former nurses home which has been recorded at market value.

The current loan balances that have been advanced to Manx Development Corporation is to enable the government-owned company to progress with the design and feasibility work which they would then seek to fund through a commercial lending facility.

The loans are subject to a 5% per annum interest rate, which is in line with the current rate of interest charged to other non-revenue funded bodies, like ManxUtilities or Manx National Heritage.

That is according to Treasury Minister Alex Allinson who was asked on the matter in Tynwald this week.

Dr Allinson said that return on investment to Treasury would be by way of dividends paid by the company which is in line with other arm’s length companies.

It was in March 2021 when Manx Development Corporation was established. This was part of the government strategy by enabling full utilisation of government owned land and property assets as well as speeding up regeneration and repurposing of urban and brownfield sites.

The sole shareholder for the Manx Development Corporation is Treasury.

Dr Allinson said: ‘Initially the intention is for MDC to use any returns on its projects to fund future property developments in order to reduce the level of treasury funding required.’

He added that as MDC has a private lender, loan costs are incurred through the private lender and are not part of the overall debts of the Isle of Man Government.

The former nurses home, which was transferred to the company, is set to be transformed into the ‘Westmoreland Village’ which would include 133 homes.