Chief Minister Howard Quayle has insisted the sale of a prime development site in Douglas, back to the major shareholder of the group that owned it previously, is good business.

The Sefton Group plans to build a new Palace Hotel and Casino on the Middlemarch site in lower Douglas after Auldyn Properties Ltd, the group’s biggest shareholder, acquired it from the government - five years after it was sold to the government as part of a bail-out package.

Now the government sold the site, on land between Walpole Avenue and Fort Street, to Middlemarch Ltd - a subsidiary of Auldyn Properties Ltd - for £3,966,540. Auldyn had previously acquired Middlemarch Ltd from the Sefton Group.

The sale price represents a £766,540 profit on the £3.2 million figure the government spent buying the land in 2013.

Auldyn Properties is the Sefton Group’s largest shareholder, with 28.8% of the group’s ordinary share capital.

Mr Quayle said: ’This has been a good deal for the people of the Isle of Man and the taxpayer, a considerable profit on the sale of the property along with interest paid every year for the hire of the site, paid to government.’

But Kate Beecroft (LibVannin, Douglas) was frustrated when she sought more details on the deal in the House of Keys this week. She said there had been a second option to purchase, in addition to that granted to Middlemarch as part of the 2013 deal.

’What happened to the second option to purchase?’ she asked.

’Government gave the Sefton Group a five-year option, which obviously expired, but there was a further option to another company for a further three months.’

Infrastructure Minister Ray Harmer confirmed that Middlemarch Ltd, then part of the Sefton Group, had the first option to purchase and said he would ’come back’ with other details on any second option.

Mrs Beecroft also sought confirmation that the 13 parcels of land in the original deal were all included in the latest sale, but Mr Harmer said he did not have those to hand.

An exasperated Mrs Beecroft commented: ’I do not expect a minister to know every detail but given the circumstances of when the deal actually went through in 2013 I am surprised he has not been better briefed on the detail of this current deal.

’The devil is in the detail and, while it might be a really good news story, we need to know the details of the deal, particularly as to exactly what has been sold - if it is the whole site, if is all 13 plots.’

In April 2013, the Allan Bell government controversially agreed a multi-million-pound bail-out to rescue the Sefton Group, which involved a £1.3m loan and the purchase and five-year lease back of the Middlemarch site for £3.2m.

Before they clashed, relations between Mr Harmer and Mrs Beecroft were a little more cordial.

Just as Mrs Beecroft got to her feet to ask the minister questions about Middlemarch, his mobile phone went off, playing the Beatles’ hit She Loves You.

As an embarrassed Mr Harmer reached for his phone, the sound of MHKs’ laughter began to drown out the Fab Four’s cries of ’yeah, yeah, yeah’.

Speaker Juan Watterson issued a stern rebuke. He said: ’She may love you - I don’t!’

Mrs Beecroft was more gracious, however.

’May I thank the minister for his lovely introduction,’ she smiled.