The former Waterloo House hotel will be turned into a five-storey mixed-use development after being granted Planning permission.

The Pitts Bay Road property will now be used for commercial and residential space.

BotelhoWood Architects said its design would be a "contemporary twist on Bermudian architecture".

Construction is due to start on the building, which is owned by Berco Ltd., in 2011.

The $100 million construction project is expected to employ 70 people. It will contain seven residential units and 106,850 square feet of office space.

The residences, which range from one to three bedrooms, will have private roof terraces while the offices will benefit from large ocean-front windows and natural light.

The Department of Tourism agreed for the zoning to be changed from tourism to mixed-use. The Minister for Environment granted the application on appeal. No objections were made to the plans by members of the public.

Sheila Stains-Ramp, Director of Planning, added: "[The] design mitigates the visual aspect of the somewhat taller proposed building as viewed from Pitts Bay Road in substantive and appropriate ways and the proposed building is not dissimilar from that approved on the opposite side of Pitts Bay Road in terms of height."

Alexander Green, of Berco Ltd., said they wanted to ensure the building was aesthetically pleasing and interesting.

They plan to include public art as well. The owners have already purchased a Marilyn Monroe print by pop art icon Andy Warhol and a Love sculpture by Robert Indiana.

The submission to the Department of Planning stated one unique feature of the landscaping will be the vine walls, also known as vertical gardens, on the property.

The waterfront will include a large outdoor plaza and berths for residents to park their boats.

The plans also said the building would be energy efficient and is expected to use between ten and 20 percent less electricity than other buildings its size.

Previously, Berco Ltd. has said they believe the Island will emerge from the current recession strong, and the location of the property will be a big selling point.

Mr. Green said: "We believe this is one of the premier sites in Bermuda with its unrivalled location on the water and within two minutes walk to Hamilton.

"We believe Bermuda will continue to be a hub of international business with its educated workforce, modern infrastructure and advantageous location between the East Coast of the US and London."

Construction is expected to last two-and-a-half years.