A local developer has come up with an innovative way to build its latest project in the heart of Bermuda's insurance district and in turn boost the Island's construction industry and labour market.

West Hamilton Holdings Ltd. (WHHL) completed work on the first phase of Belvedere Place comprising two levels of parking last year but has put the construction of the four office buildings on hold until it finds a suitable tenant.

Now the company is looking to secure relief from Government on duty and payroll tax for select categories of construction workers to help offset the risk of investing in commercial real estate and in return seek to employ out of work Bermudians with the necessary skills, according to WHHL's chief financial officer Harrichand Sukdeo, who is overseeing the project.

"We could coordinate this if the relief is significant to justify such a partnership between us and Government," he said.

Mr. Sukdeo said there were a number of opportunities for consideration by developers in Bermuda and WHHL was keen to get the next stage of its development underway. The work to build 50,000 square feet of office space is expected to take one year to complete from the outset.

Despite the economic challenges that have arisen from the recession, on the flip side it has also presented a favourable climate to do business in, with an inexpensive source of financing at a low interest rate and a competitive construction costs, as well as taking on unemployed workers in the industry, said Mr. Sukdeo.

"This is an innovative solution which can offer employment to construction workers, work for the construction industry, lower the cost of a prospective tenant and improve the visibility of the insurance district with a state-of-the-art office complex," he said.

"It would be beneficial for all if Government could recognise that we as a developer are taking on the risk of investing in a poor commercial real estate market and offer us some relief to help stimulate the construction industry."

Mr. Sukdeo believes that it will be a "win-win situation" all around, with WHHL able to offer very attractive rents to prospective tenants as an incentive to be based in Bermuda, while providing work for local employers.

He said that due to the economic downturn WHHL has had to be more creative in the way it operated and, with Sir John Swan's 141 Front Street nearing completion and the King Edward VII Memorial Hospital new building development the only significant project on the horizon, the company had gone the extra mile to provide much needed work for the construction industry.

The redevelopment of the 2.1-acre former Bermuda Bakery site on Pitts Bay Road, which began in 2007, has included the construction of a parking lot for almost 300 cars, 70 percent of which has been let out to users in the surrounding area, in addition to the installation of a back-up generator, water cistern, and mechanical and electrical works below ground, according to Mr. Sukdeo.

And he reckons that it is a prime location for a business seeking to relocate and get good value for money, with the chance to get involved in the design of the six-storey building and acquiring the naming rights.

But Mr. Sukdeo admits that many people are apprehensive about moving given the current economic climate, however he views his development as a better proposition than many of those new office spaces currently available which were built at a higher cost during the construction boom without the benefit of a lower financing cost.

"The development of Belvedere Place was put on hold a year ago primarily because of the surplus of office space in the marketplace," he said.

"It was a deliberate decision on our part to do so until such a time as we believe the market has recovered or an opportunity to partner with someone has come along. The timing is right now because of the low cost of financing, reduced cost of construction from competitive bidding, the availability of construction workers and possible assistance from Government."

Anyone interested in the Belvedere Place development can contact Harrichand Sukdeo on 295-5985 or email harrys@westhamilton.bm