Treasury Minister Alex Allinson says rents at a new development in Douglas will be enough to cover the costs of the building.
He faced questions in Tynwald this week from Douglas Central MHK Chris Thomas about Thie Clag, the former nurses' home on Westmoreland Road.
Dr Allinson said Cowley Groves had been appointed to let the apartments and retail units at the site.
And he added rents have already been set for the building:
Bad weather means two ferry crossings cancelled
Two ferry sailings have been called off in the face of bad weather tonight.
Commissioner hits out at "nuisance" campervans
Are camper vans becoming a problem in Onchan?
Livestock worrying consultation ends this week
There are just days left to air your views about dog attacks on farm animals.
Warning over possible ferry disruption tonight
Two ferry sailings are at risk of disruption tonight.
Department told to provide new FOI response to Visit Isle of Man query
The Department for Enterprise will have to give a new answer to a Freedom of Information request after an appeal to the Island's information commissioner.
700 sign petition to keep Castletown street sweeper
A petition to give a street sweeper a permanent job in Castletown has hit more than 700 signatures in just three weeks.
Mystery after oily birds found in Peel
An Island charity says it hopes this will be the year authorities find the source of oil contaminating birds in the west of the Island.
Laxey move announced for well-known jewellers
A landmark business in Douglas says it's moving out of the capital after more than three decades.
