Bermuda Air Conditioning Ltd. (BAC) is bucking the trend of many companies by raising its investment in Bermuda as the current economic crisis deepens.

Mills Creek Properties Ltd., a subsidiary of BAC, yesterday announced that it had just broken ground on a new 77,500-square foot building on Mill Reach Lane in Pembroke.

But while several other firms have been cutting back on their spending, BAC is investing in a project that will put money back into the Island's economy. It also plans to come out of today's financial turmoil in a much stronger position as a result, according to BAC's managing director John Plested.

"Contrary to what is happening at the moment, we are investing right now while others are holding back and not developing," he said.

"We are convinced that this is the right time to build and hopefully, by the time we have come out of it, we will be in a better position to take advantage of that and have a better product for Bermuda.

"BAC is going to be putting several million dollars back into the economy, which, as far as we are concerned, is a great thing. We are proud to do it and it shows confidence in the future of Bermuda."

Work has already started on the six-storey building, which is designed by well-known Bermudian architectural firm Linberg & Simmons, and is due to be completed in 52 weeks on February 28, 2010.

The project, which will be managed by Atlantic Building Consultants Ltd., with construction led by Somers Construction Ltd., is located on 0.45 acres of land directly behind BAC's current facility on Mill Creek Road.

Implemented in the design will be an elevated second floor parking level and an open plan ground floor will still allow container trucks to pass through the property and be unloaded at the other end. "This is an exciting project for BAC," said James Gibbons, president of BAC. "We have partnered with some of the most trusted names in the business to build a functional commercial development near the City of Hamilton.

"Our goal is to complete the project on time and on budget with environmental sustainability in mind, and we are convinced that the end result will be something we can be proud of. Our decision to develop this property today confirms both BAC's confidence in Bermuda and the future."

The ground level and first and second floors of the property will be used by BAC for storage, while the third and fourth floors each contain some 11,360 square feet of net warehouse space that will be available to rent by other businesses in early 2010.

"For our part, we needed additional warehouse space," said Mr. Plested. "We also realised that there are other companies out there which could no doubt benefit from the same thing, given that commercial storage space is at such a premium in Bermuda."

The top level of the building will contain studio apartments for short-term BAC employees, while solar panels located on the building's roof will produce all the hot water for the 19 apartments.

"Being in the mechanical engineering and HVAC industry ourselves," said Mr. Plested, "it has been important to us from the outset to consider the project from a 'green' standpoint, hence the use of solar panels and more energy efficient heating and air conditioning units in the construction process."