The former Waterloo House has been sold and will be turned into office and residential space.

The property was purchased from overseas real estate development firm Brickman Property Ltd. by investment company Berco Ltd. for an undisclosed amount.

Berco Ltd. is owned by the Green family, who have homes on Marshall's Island in the Great Sound.

Speaking yesterday Alexander Green said the sale was completed last Friday and they are looking forward to building a distinctly Bermudian property.

It is hoped the construction will be completed by 2013.

Originally they wanted to build a hotel on the site as they own other hospitality properties in London, but found it was too small.

"We could not get the numbers to work as we would not have been able to have enough rooms," Mr. Green said. "We are now hoping to do a combination of office and residential.

"We are hoping to build a building that is modern but still distinctly Bermudian; that is beautiful from both the road as well as the water."

The company already owns Overbay, next to Waterloo House. Also a mixed-use building, it has a residential unit and houses the offices of Allianz and Guy Carpenter.

Berco Ltd. is aiming for a similar aesthetic for the new building. Local firm BotelhoWood Architects, the same firm that designed Overbay, is currently drawing up the plans.

Mr. Green said: "Initial plans have been drawn up and our architects are now refining them. When we are happy with them everything will need to be submitted to planning for approval.

"Our aim is to start construction as soon as possible."

When asked if he was concerned Bermuda's property market has become saturated with office space Mr. Green said they believe the Island will emerge from the current recession strong, and the location of the property will be a big selling point.

"Long term we still believe in Bermuda and its business potential," he said. "We are also confident that it is a unique site and any office space on the site will be very appealing.

"Even though things may be tough at the moment a building like this does not go up overnight so we are hoping that in a few years when it is completed the global recession will be well and truly behind us and that everything will be back to business as usual.

"Bermuda is a beautiful Island and with its favourable tax structure and 21st century infrastructure we feel current businesses will continue to grow and new businesses will choose to set up offices.

"The location of Waterloo House is also an encouraging factor for us as we feel that businesses will be attracted to not only being in Hamilton but also being on the waterfront.

"We are committed to Bermuda and have faith in its long-term success."

The site was originally purchased by Brickman Property Ltd. in 2007 and Waterloo House hotel — which was once named by Travel and Leisure Magazine as the "most sophisticated jewel of a small hotel in Bermuda" — was closed in July 2008.

The Department of Planning greenlit the former owners' plans to demolish the property and construct a three-storey development for office space and an underground parking lot in December, 2008.

Brickman Property Ltd. founder Rod O'Connor did not respond to requests for comment about why the property was sold by press time. Nor did he reply to questions regarding the other properties Brickman owns — Coral Beach and Horizons Ltd. — and whether those properties could also be up for sale.