One of the last undeveloped lots on Front Street could be pulled down to make way for a $10 million office and restaurant development, The Royal Gazette can reveal.

The property, which extends from ER Aubrey to Wadsons and includes the Harbourfront Restaurant, is owned by the Anglican Church in Bermuda as an investment.

And now the church is looking for prospective tenants in order to tear down the existing two-story building and build a state-of-the art four storey office block in its place.

"This is a very exciting project," said Leonard Gibbons, owner of Leonard Gibbons Real Estate, and chairman of the church's property committee. "I have 38 years in real estate, and take it from me, it is very exciting."

The building will have views not only across the harbour but also into Par-la-Ville Park.

"It is a very attractive site, one of the last undeveloped lots on Front Street," said Mr. Gibbons. "There would be two balconies on the front."

He added they would like to extend the alley-way to Par-la-Ville and widen it to 12 feet to allow that to be an entrance to the building.

"It is an innovative design and one of the interesting aspects is there is an alley between the buildings where bikes are currently parked. We would like to open this alley up to 12 feet and make it a lane going back and have a walkway up to Par-la-Ville."

Mr. Gibbons said the church, which owns the property through its Bermuda Church Society, has received permission in principal to erect a new building on the site.

But they will not go ahead with the 23,500 square feet, five floor (including basement) office building with restaurant and retail space on the ground floor plus a basement, unless they have secured at least some tenants.

So yesterday the society ran an advert for a "superior office building to be constructed" advertisement in The Royal Gazette in a bid to attract interest in the venture.

"We are working with the architects at present," said Mr. Gibbons. "We are looking for tenants, but we have not been successful yet."

He said that if the church does succeed in getting the right tenants, the project will take about two years to complete at a cost of between $8 million and $10 million.

Mr. Gibbons said that the time had come for the church to look at the future of the buildings as they were getting old.

"The building is infested - the termites are holding it together," he joked. "And there is an awful lot of wasted space. The new building would be a good long-term investment for the church."

One part of the property was left to the church, and the church bought the other part. The money raised by the properties is used for the benefit of the Anglican priests in Bermuda - and helps pay their pensions, health insurance and holiday leave.