Lisa Pilkington takes a look at the islands’ super-rich: who they are, their property and other empires, and how their fortunes are faring in the wake of the credit crunch
Guernsey – Hands
Guy Hands, the head of private equity company Terra Firma, gave up UK domicile (and UK tax) last year and moved to Guernsey into what local agent Nick Renny of Martel Maides describes as a “whacking great house”.
The 51-year-old former Goldman Sachs and Nomura investment banker has an estimated fortune of around £200m. It might have been more had Terra Firma not brokered the purchase of music group EMI on the eve of the credit crunch, since when the value of the record label has plummeted.
Accounts filed last month show that another of Hands’ businesses has also run into hard times. The 17-strong, luxury Hand Picked Hotels chain, which is run by Hands’ wife Julia, posted pretax losses of £8.2m for the year to November 2009, down from losses of £3.1m the year before. Turnover at the group, which was worth £160m at its last valuation, fell 5% to £58.3m.
But it has not all been bad for Hands. According to Renny, he has settled in well on the island over the past year. “He’s on the circuit here and has been well received so far. He’s invited to all the best dinner parties,” he says.
However, in documents filed on 4 February 2010 in a US court as Hands sought to prevent a legal ruck with Citigroup Inc regarding the purchase of EMI from being heard in the UK, Hands said that the decision to become a tax exile has proven to be a “burdensome option for me and my family”.
Isle Of Man/Jersey – Hemmings
Rarely seen without his flat cap, Trevor Hemmings spends much of his time on his private aircraft flying between his homes on the Isle of Man, Jersey, Ireland and Chorley in Lancashire.
The reclusive 75-year-old tycoon, who owns Blackpool Tower and is head of the Northern Trust Group, has an estimated wealth of £300m, down by a massive £730m in 2008.
According to figures posted at Companies House for the year ending March 2009, the value of Northern Trust’s property portfolio and stable of racehorses fell 9% to £456m. Revenues at Northern Trust fell 10.7% to £50m, while pretax profits were down 87% to £2.7m.
The company is owned by Wordon Ltd, an Isle of Man-based holding company directly controlled by Hemmings and his family.
Publicity-shy Hemmings has only been interviewed three times and remains an enigma. His last interview was with the Racing Post in 2001. In 2007, it was reported that he owned more than 100 racehorses.
Islanders are reluctant to talk about down-to-earth Hemmings and his life on the Isle of Man, where he owns an equestrian centre. He is known to have a jaw-dropping collection of vintage Rolls-Royces at his impressive mansion in the north of the island, which apparently features a 15ft fountain in the main reception room.
Brecqhou/Sark – Barclay brothers
Sir David and Sir Frederick Barclay, owners of Ellerman Investments, are the wealthiest people in the Channel Islands. The 74-year-old identical twins own the island of Brecqhou, just west of Sark (of which they also own a fifth), which are both part of the Bailiwick of Guernsey.
They operate their property, media, hotel and retail empire from Brecqhou in a bespoke mock-Gothic castle, designed by Quinlan Terry and featuring 3ft-thick granite walls, battlements, two swimming pools and a helipad.
According to the Estates Gazette 2009 Rich List, the owners of the Ritz hotel, the Daily Telegraph and the Shop Direct high street mail-order group have seen their wealth plummet by £600m, from £1.6bn in 2008 to an estimated £1bn in 2009.
Turnover at their principal investment vehicle Ellerman Investments fell by 63% in 2008. Group turnover at Ellerman fell from £80.3m in 2007 to £29.8m in the 12 months ending 31 December 2008, according to accounts filed at Companies House in November 2009.
Locals are nonplussed about having the billionaires residing close by. Jon Carter, managing director of the Jersey office of CB Richard Ellis, says: “The Barclays have done no property transactions in the Channel Islands, which is a shame as it would be good to put something back. I know they spend time at their castle but they go there direct via helicopter. I don’t think they really pass through Guernsey at all. They keep very much to themselves.”
Agents’ view
Jersey
CB Richard Ellis Jersey managing director Jon Carter says: “A good majority of the millionaires on Jersey invest in the island’s commercial and residential property market, either from an investor or developer perspective. As agents we get to know these people.”
Carter cites Tom Scott, chairman of property and development company ComProp, and former Formula One racing driver Derek Warwick as examples.
Scott came to the island a number of years ago and has invested in various businesses. Warwick has his own franchised Honda garage business and is also building himself a home.
Guernsey
Guernsey-based agent Nick Renny of Martel Maides says of his rich neighbours on the island: “Generally, it’s the super-rich who come to Guernsey as they are not made a focus of attention here and they can go out and be left alone.
“Whereas Jersey is a slightly flashier environment so flashier people go there.”
He adds: “As an islander, you do sometimes get what we call “rock fever”, that’s why we’ve all got boats.”
And there must be more time than usual for sailing, as he describes the market as “pretty much frozen”. “Things are very, very, slow,” he adds.
Only two office deals have been completed so far this year – both are 15,000 sq ft prelets at Glategny Esplanade in the island’s capital of St Peter Port.
Isle of Man
Michael Chapman of the eponymous Douglas-based agency says the island’s property market has held up quite well during the recession.
“Although business is quieter, there have been no redundancies in estate agencies here. Agents tend to cover both the residential and commercial markets as they are quite small,” he says.
He says that new occupier types are helping to buoy the market: “Growth sectors are the satellite leasing/telecom provider sector and e-gaming,” he says.
With no oversupply and historically few incentives on deals, the financial situation remains a passing concern. “There is a lot of uncertainty concerning UK and European finances, which washes through here. This will affect us, but we are slightly sheltered.”
