Questions continue over a land transaction in which the Hotel Pension Fund lost more than $300,000.

Responding to allegations that the fund's trustees had misused its assets, administrator Calvin White issued this statement: "The property was purchased in 1990 with a view to constructing a building that would house the offices of the fund and provide additional space to lease, thus generating income to the fund. A subsequent board reviewed the decision and in 1991 decided not to proceed with the construction and to sell the land. The estimated decline in market value of the property was recognised on more than one occasion in the audited financial statements of the fund and presented to the Plan Sponsors at annual general meetings."

Last week hotel worker Raymond Russell alleged that the trustees were involved in a "cover up" over the deal, and questioned how the trustees could pay more than $500,000 for a property which, 14 months earlier had been worth $200,000 and then sell it ten years later for $200,000.

The proposition that land in Bermuda could lose market value over ten years raised some eyebrows among real estate professionals contacted yesterday.

The land in question is a 2,076 square foot lot on Brunswick Street, Hamilton and was purchased from the fund two years ago.

Realtor Cris Valdes Dapena said that for land in Bermuda to decrease in value "sounds entirely improbable" but that she would need to have more information to make a judgement on a specific case.

"It is fair to say that real estate across the board has increased in value over the last ten years," she said.

"It happens from time to time in Bermuda that property is sold for less than what was paid for it, but typically that's because too much was paid for it."

Susan Thompson, sales manager of Coldwell Banker, echoed similar statements and said that in the six years she had been working in the industry she has not seen land values decrease.

"I have only seen it increase," she said.

"The only way I can see it decrease is if you bought a building and let it fall into disuse. If you have land in Hamilton, it would more than likely increase in value."

Mr. White could not say whether the property was professionally evaluated before it was purchased in 1990. He said he was not employed by the fund at the time and when asked if the trustees were satisfied that they paid fair market value for the property, he said "I would assume it was fair market value."

When asked, he said he did not know who his predecessor was.

And citing confidentiality he would not give this newspaper access to minutes of board meetings in which the transactions were discussed.

"The bottom line is the land was purchased, it declined in value and it was sold," he said.