The House of Assembly has greenlighted the Government’s purchase of the Compass Point building in Hamilton from HSBC Bermuda.

Jaché Adams, the public works minister, told MPs that the Government negotiated a purchase price of $14.5 million, coming in $1.5 million below the figure assessed by the Department of Land Valuation.

The car park to the west of the building was included in the purchase price.

Mr Adams told the House that the Government spends approximately $11 million annually on commercial office accommodation — and that acquiring the building marked “a deliberate first step towards reducing that burden”.

The purchase of the 81,000 sq ft office block is covered by the Acquisition of Land Act 1970.

The Compass Point building, on a 0.78-acre lot at 9 Bermudiana Road, was listed for sale in 2024 for $19.5 million through Rego Sotheby’s International Realty.

Mr Adams said relocating departments operating from privately leased facilities into a government-owned building could save approximately $2 million annually in private rental expenditure, with the funds potentially rerouted to roads, housing and infrastructure.

He said the Ministry of Public Works and Environment had considered several options before deciding on the purchase. The construction of a new facility was considered, but would have proved costly. The ministry also examined repurposing government sites including former school buildings.

However, he said many of the properties were already allocated to “important national priorities” such as community services, facilities for seniors, food security initiatives and education reform, and would have required substantial investment to refurbish.

“After considering these options, government determined that the acquisition of Compass Point represented the most prudent and cost effective path forward,” he said.

Mr Adams noted that the purchase would allow for government departments to be housed temporarily during renovation works.

In response to questions from the Opposition, he said deficiencies such as roof leaks were identified in the acquisition process and such needs were factored into the purchase price.

He said the completion of the purchase was aimed for the end of July, with initial occupancy expected by December. With maintenance, the building was expected to be fit for another 50 years.

Vance Campbell, the Shadow Minister of Public Works and Infrastructure, said the Opposition backed the move, calling it: “a large purchase but it is one that makes financial sense”.