Up to $60 million is being pumped into a swish shopping, housing and office development off Hamilton Harbour.

Pearman, Watlington and Company proposes to redevelop its Pitts Bay Road site to make way for the complex. Existing buildings would be razed to the ground -- including Miles Super Service Market, which would be rebuilt nearby.

And in their place would come, among other developments, luxury homes, a marina, and a restaurant.

One of the likely office tenants in the new complex is Centre Reinsurance Holdings Ltd.

Centre Re had intended taking over 71,000 square feet of office space at the proposed Bermuda Financial Centre -- earmarked for the old Bermudiana Hotel, overlooking the 4.25 acre PW site.

Yesterday, however, Centre Re's executive vice-president Mr. David Brown told how excited he was by the PW venture which should provide a much-needed boost for the construction industry.

"We view this site -- with its office space, retail space and residential units -- as having the potential to be the premier location in Bermuda. As we continue the global expansion of our business, we see this location as a fitting setting for our corporate headquarters.'' Said Pearman's chief executive officer Mr. William J. Cox: "PWs is pleased to announce that Centre Re sees the tremendous value of this project and is attracted by the possibility of being the anchor office tenant in this major development.'' Mr. Cox believed Centre Re wanted to occupy between 60,000 and 80,000 square feet. "What it shows is that two companies are very committed to Bermuda, and make a contribution to Bermuda.'' Mr. Cox said the scheme would provide a great opportunity to tidy up the site.

"It will enable us to enhance the site, which is not one of the more beautiful ones.'' He added: "This development, when completed, will be the largest such undertaking in Bermuda in the last 25 years.'' Helping with the design of the complex has been Bermuda Caribbean Consultants and Boston-based Ben Thompson Associates.

The PW proposal is to be presented today to the Development Applications Board for approval in principle. The new development would house more than 100,000 square feet of office space, and about 25,000 square feet for shops.

As well as a new Miles store, there would also be a coffee shop, pharmacy, and dry cleaners. And Rock Island Coffee and Bermuda Island Cruises would be brought into the scheme. In addition, some 30 luxury condominiums overlooking Hamilton Harbour are planned. These would be two-storey, two-bedroom homes, each covering 2,200 square feet. They would be targeted at big-pocketed international businessmen, and anyone at the high end of the market.

Mr. Cox, who is also president of Pearman's sister company, Miles Super Market, said the project would be carried out in two phases.

First, the offices would be built.

Included in this phase were the retail outlets earmarked for the bottom floor of the office development, said Mr. Cox. "We anticipate that the new Miles store will be completed by the middle of 1998.'' Mr. Cox said extra jobs could be created by the proposed resiting of Miles.

None should be lost.

The rest of the first phase would be finished by around 1997 and 1998.

Mr. Cox said the second -- and final -- phase would be the luxury homes. "We believe the entire project will be completed by the year 2,000,'' he added.

Mr. Cox said two of PWs neighbours -- the Princess Hotel and Waterloo House -- were very supportive of the project. He pointed out the buildings would have a traditional architectural design, blending with the surrounding area.

"We are looking at producing something which in 20 years we will be able to look back on with pride.'' Yesterday, Mr. Stephen Barker, regional vice-president of Princess Properties International, said: "It is my understanding that the proposed development complies with the zoning regulations and intentions of the Development Plan.

Clearly, there is a demand for an office building of this size and physically it will blend well into the site. The Cox family have always been good neighbours and I am certain that the project will enhance the entire area and therefore be good for the Princess and all of Bermuda.''