Former developer to sue Coop for £300k

A former developer of a derelict site has asked a court to order the Channel Islands Co-operative to pay it £300,000 after it alleged the Coop had breached an exclusivity order on the site.

Omnibus Limited has said an agreement signed on 8, February 2022, gave them and contractor J.W. Rihoy & Son exclusive rights to negotiate the development and purchase of Leale's Yard, in Guernsey.

In July 2025, Guernsey's States announced it would be buying the site in the north of the island for £4.5m from the Coop.

The Coop said it did not agree with the allegations and intended to "robustly" defend itself. The initial case was heard in Guernsey's Royal Court on Friday morning.

Under the agreement Ominbus alleges the Coop agreed not to negotiate with other parties regarding the site.

Originally Omnibus worked up plans for more than 300 new homes on the site, alongside a new park and supermarket.

Director at Omnibus, Charles McHugh said his firm had spent £750,000 on the preparatory work for the development.

"This action has not been taken lightly.

"Omnibus made sustained efforts over a long period to progress the development and resolve matters without litigation.

"We believe it is reasonable and necessary to ask the court to determine whether that agreement was honoured."

Now, following the purchase in 2025 Guernsey's States has made the development of Leale's Yard one of its five super-priorities for this political term.

Demolition of the site is expected to commence in September, with contractors for the work set to be announced imminently.

The States has also said expert consultants are due to be appointed to work on a masterplan for the developments in that area, including the Kenilworth Vinery and the old data park.

The States bought those two sites for £6.5m and £4.75m respectively.

Guernsey's Committee for the Environment and Infrastructure is currently scoping out what kind of flood defences could be built at The Bridge to facilitate the development of these sites.

McHugh said: "The claim is not intended to prevent Leale's Yard from being developed.

"Our objective throughout was to see the site regenerated and new homes delivered as quickly as reasonably possible.

"Nor are we making personal allegations against officers of the Coop, civil servants, politicians or any other individuals."

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