Pearman Watlington & Company Ltd. in its multi-million dollar plans to develop the waterfront.

And a senior PW's executive said yesterday that the project is so large that the company will this month appoint an overseas developer to oversee it.

Both the Princess Hotel and Waterloo House are in talks with the 150-year old retailer about the plan to pump up to $60 million into a new shopping, housing and office complex overlooking Hamilton Harbour.

PW's chief executive officer, Mr. William Cox, said: "It makes sense to incorporate both our neighbours, both Waterloo House and Princess Hotel, in our discussions to enhance the whole waterfront arena, because it would also complement what they are offering to their guests.

"So certainly there are discussions on both sides to try to improve the mutual areas. We've had open talks with them. We are talking about handling a site from Princess down to Barr's Bay.'' And president Mr. Harry Cox said: "The development is vital and must take place. It is long, long overdue.'' The building project is expected to comprise two phases, the first lasting two years and the second lasting three.

Mr. William Cox said: "This project is going ahead. The planning process continues on, but I'm not certain that people realise the urgency of accommodating our offshore business, which has been recognised as the most important economic ingredient to Bermuda's success. And we are continuing to work with Planning to expedite this project.

"We've been through inquiries for a developer and we should have one appointed by the middle of next week. The developer is being brought in (from overseas) for some very particular reasons.

"One is the complexity of a mixed-use site. And secondly, because we want to ensure that the site is handled in such a way that even in 50 years time, it will be something that Bermuda is proud of. We need someone who has a proven track record. "Some of the projects we've looked at include South Street Seaport in New York, Fanieul Hall in Boston and Rose Wharf in Boston. Rose Wharf is a mixed-use condominium, office, retail complex harbour side, very similar to what we are doing. We've been talking to the developer who did that, for example.

"We've looked at numerous office buildings in New York that developers have handled. All the people we are talking to are world class people.

"The objectives are: one, to make sure that we schedule our businesses properly; two, we have someone professionally handling the development of this complexity; three, having someone who will handle the Bermuda site well; and, four, making sure that it is fast-tracked to be built in the speed that we can build it.

"That's where I feel certainly where one of the weaknesses in the (Bermuda) Financial Centre has been in the whole planning aspect. The time and commitment going into planning. Not just the Planning Department, but the planning of the way we deal with the development.

"Financially, commitments are made to make our project happen quickly, and we won't be left with a pink hotel half torn down,'' he said of the project planned for the Bermudiana Hotel site.

There were clearer indications this week, as well, that international business endorsed the planned concept. The CEO expressed a view that Bermuda business welcomed the plan.

He added: "Centre Re is very much on board with this project. Their people are 100 percent supportive and determined to come to this site.'' Mr. Harry Cox stressed: "There is a combination on the waterfront envisioned for some retail and office space, but from a Bermuda image point of view, it must be clear that we are not providing condominiums, but townhouse residences on the fringes of Hamilton Harbour. That's quite distinct from a condominium development.'' PW's chiefs are still very much involved in the process of obtaining planning permission, with a company response to Planning enquiries for further information destined yesterday for Government officials.

They still need to settle exactly what the balance of the mixed-use will be: How many private residences will be allowed and how much area will be set aside for retail and office space.

Meanwhile, company officials may have considered possibilities for other aspects of the sprawling company, including a three acre site on St. John's Road, which includes a service station. But they've made no decisions.

The president said: "At stake obviously are agency arrangements with overseas interests and the wellbeing and security of our staff, as well as the effective management of those businesses which we intend to continue.'' The CEO said: "Miles Market, PW's Marine Centre and Marine Service Station will continue to operate in the first phase of construction here.

"The businesses which would be relocated, resized or re-engineered will be the (Pitt's Bay) Appliance, Feed & Garden and Home Centre businesses. No decisions have been taken by the company and the earliest decisions won't be acted upon until June, 1996.

"I'm a great believer that Bermuda is too diversified in the retail trade here, and there are too many people competing in it. Would we abandon businesses? No. Would we look at mergers or acquisitions of other businesses to make ourselves stronger or make competitors stronger? Yes.

"But you take the Home Centre issue. You have seven of them competing against each other. It doesn't make sense in a community of 60,000 people.

"My concerns are ensuring that we treat and take care of our staff on an informative basis and a fair basis, and, that they are involved in all of the discussions and are aware of what's being discussed.

"My second concern is ensuring that both Government and Planning realise the urgency of this project, and the time frame and the commitment that's been made to Bermuda's future by a local family and an exempted company who are confident in Bermuda's strength and direction. We hope that is realised.'' The company also yesterday started 10 days of employee briefing, to keep them in the picture as much as possible. Miles Market employs 38 staff and there are another 121 employees of PW's.

"We are meeting with staff over the next ten days, starting today, with the first group. We met with them before we submitted the plans for the development to Planning. Every single staff member depends on this company surviving and I'm well aware of that and I won't do anything to jeopardise that in a short term basis.'' join with Waterloo House and the Princess Hotel.Mr. William Cox