Government will invest approximately $12 million in its bid to create more office space near its Global House offices on Church Street.

The news came from Minister of Works & Engineering Alex Scott yesterday and follows his announcement in the House of Assembly on November 19 that Government will develop an asset based property portfolio.

The land adjacent to Global House, on the corner of Church and Court streets, will cost Government $2.6 million to buy and 25,000 square feet of office space will then be developed at the location.

The land is understood to be earmarked for the location of a new Police station and courthouse.

The move is one which Government says will save the taxpayer cash.

Mr. Scott said: "The shift from the acquisition of leases from third party landlords to satisfy accommodation needs will show considerable savings to Government in the years ahead.'' The acquisition and redevelopment of the lot at Church and Court streets will show payback within 15 years while also creating an appreciating asset, he added.

Government is already a significant player in the property market, said the Minister.

"Within its overall mandate of operations, Government and its quangos have the capability to support their various property objectives,'' Mr. Scott said.

"The Bermuda Land Development Company and West End Development Corporation have property stock vested in them with a view to assist and encourage entrepreneurial initiatives.

"The Bermuda Housing Corporation has land and housing requirements to satisfy rental and home ownership.

"The Government has in its focus the occupational needs, the need for open space and the ability to balance the funding for all these inter-related activities.

"By acting in a comprehensive manner with respect to property procurement, the new Government will produce solutions to the mutual benefits of all the stake holders.'' But the shift does not mean Government will eliminate the need to lease rented space, stressed Mr. Scott.

"Short-term service delivery initiatives will not justify the acquisition of freehold investments and Government will continue to lease reasonably priced good quality office space for short-term occupation,'' he said.

"Consideration will be given to the duration of leases when there is a need to renovate a privately-owned building that does not currently meet the building code.'' At the same time, it will not hold on to land it does not need.

"Government will continue to review its property holdings and will dispose of land and buildings which do not meet the service delivery needs,'' said Mr.

Scott.

"This on-going, critical examination of all its property objectives will ensure that expenditure on real estate is made in the best interests of Bermuda.

"The shift toward ownership, as opposed to renting, will underpin the asset base of Government and will support the economic credibility of the Government well into the next Millennium.'' Alex Scott