owner, it was revealed yesterday.

For the US State Department has accepted a multi-million dollar bid from a mystery private buyer for the Paget mansion and its 14 acres.

Now preliminary papers have been signed, although the deal is not yet sealed -- but no problems are expected.

The bidder is understood to be a wealthy US businessman -- and he has undertaken to preserve the house and grounds intact.

The news ends a "will they, won't they'' saga of a possible bid for Chelston from the Bermuda Government -- who insisted the estate was over-valued by the US at $15 million.

Acting US Consul General Sylvia Hammond said: "I have been given permission to inform The Royal Gazette that in early June the US Government received a bid of a substantial amount for Chelston.

"We accepted the bid -- prior to accepting it, however, we informed the Minister of Works and Engineering of the bid.

"But there has been no discussion of an offer since we informed them in early June.'' Ms Hammond declined to name the new owner of the house -- or reveal the price paid.

But it is understood the winning bid was close to the $15 million asked for by the US government.

Ms Hammond said: "We ascertained that the money was from legitimate sources and that the proposed buyer was to maintain Chelston in its pristine state and intended to use it as a private residence.'' And it is believed the new owner came up with a massive down-payment on the house to underline the seriousness of his offer.

The Royal Gazette understands that Government was informed of the businessman's bid last month -- but failed to come up with a concrete counter-offer.

Mr. Scott could not be contacted for comment yesterday.

Ms Hammond said: "The United States government now considers Chelston to be sold.

"At the moment, we have no plans to have further discussions with the Bermuda Government.'' She added: "The US government would have loved to have sold it to Bermuda -- it would have been a gesture of goodwill. Federal parks are important in the US and it would have been available to the people of Bermuda.'' Works and Engineering Minister Alex Scott earlier this week floated the idea of a deal involving Chelston and the replacement of the ageing Longbird Bridge connection between St. George's and the airport with the rest of the Island.

And he also suggested a deal involving Government buying Chelston in installments spread out over several years.

But Ms Hammond ruled out any linkage of the sale with the bridge, still claimed to be a US responsibility under the old WWII bases agreement and due for replacement soon at an estimated cost of $15-$20 million.

She said: "We have maintained throughout that Chelston and Longbird Bridge could not be linked in any form.'' And she added: "The Bermuda Government never mentioned any installment plan and -- even if they had -- we would not have accepted it.'' The house sale means that new Consul General Larry Owen, a wealthy Chicago businessman and Democrat fundraiser, is likely to move into a rented property when he arrives in Bermuda, probably around the middle of next month.

Ms Hammond said: "We can't really look at purchasing a house until we have settled the sale of Chelston. But we are going to have to find a replacement.

"We have looked at several properties, but we have nothing specific in mind.'' Last night, green pressure group Save Open Spaces challenged Government to put the cash it might have spent on Chelston and its grounds to buying up other under-threat undeveloped areas.

SOS chairman Stuart Smith said: "This is the first time that a Government of Bermuda has realised the importance of investing a significant amount of money to help preserve and protect open spaces for future generations of Bermudians.

"In light of the sale of Chelston to an overseas buyer, Save Open Spaces hopes that the Government will follow through on its commitment to preservation of open spaces by redirecting these funds to the purchase of other open spaces in Bermuda.'' Mr. Smith added that eight acres of undeveloped land in Smith's was currently on the market for $1 million, while another 12 acres was available in Southampton for $3.5 million.

He said: "The presents Bermuda with the unique opportunity to purchase a total of 20 acres of open space for a very reasonable $4.5 million.''