The Bank of Bermuda remained tight-lipped on plans for the Front Street space it is snapping up from retailer Trimingham Brothers Ltd. after the shock announcement this week that the store will close at the end of July.

Although little is known about the bank?s plans for the space, understands that existing planning regulations limit what the bank can do with its latest property acquisition.

The stretch of Front Street occupied by Trimingham?s is zoned as the city of Hamilton?s ?principal shopping area?, according to the City of Hamilton plan 2001.

This area extends from Front Street and Bermudiana Road east to Parliament Street; Reid Street from Burnaby and Queen Streets; and Queen Street from Reid Street to Church Street.

The plan states that non-retail development ?will be resisted? in those areas. As such, buildings in these areas must have some kind of retail business at least on the ground floor, which can include restaurant and in the case of the bank, retail banking.

For the Trimingham?s space, the retail business requirement would apply on both the Front Street and Reid Street levels.

The bank is also bound by existing regulations to keep the store?s veranda fronted facade, and is restricted to a level of three storeys on the Front Street side of the property, and four storeys on the Reid Street side.

An additional storey can sometimes be given the green light by Planning, if it is for residential use.

Development must also be set back nine feet from the street, and higher storeys may have to be set further back than lower levels.

Meanwhile, the bank would not be drawn on when it will make public its plans for the space. On Tuesday the bank said it had some ?preliminary ideas? for the site?s redevelopment but declined to elaborate further.

There is speculation that the retail banking hall could be moved to the space, which would be in keeping with the zoning regulations for this area.

It also emerged that the bank did not have to seek any special permission from Government to buy the space, because of its ownership by multinational banking giant HSBC Plc.

In a written response to questions from Finance Minister Paula Cox said: ?The transaction was a matter between two local companies, i.e. Trimingham Brothers and the Bank of Bermuda Limited which by virtue of its 114B license under the Companies Act retains its status as a local company.

?As the transaction was a private matter between the companies, Government has no further comment in this regard,? she said when asked if any Bermuda businessmen or developers were given a chance to buy the valuable piece of real estate ahead of the bank.

At the time of the bank?s sale to HSBC a year ago, it acquired all of the Bank of Bermuda assets, including its expansive property holdings. Although a foreign corporation that cannot hold Bermuda land without permission, a Bermuda subsidiary company was incorporated to hold the bank?s assets.

Ms Cox said the sale was also not at odds with recently put in place regulations that ban a Bermudian land owner from selling property to a foreigner.

?The transaction was between two local companies and therefore was not in breach of existing policy,? she said.