The new building erected by Bermuda Press Holdings is worth $10.5 million according to a statement issued by the Bermuda Stock Exchange.

The statement says that the company, which owns The Royal Gazette and The Mid Ocean News , had made arrangements to borrow up to $11 million for the project.

The building, called Crown House, is located on Par-la-Ville on the site of the former Royal Gazette car park. It now houses KPMG and Pronto Print will move in soon.

Companies listed on the Bermuda Stock Exchange are obliged by listing regulations to disclose any major changes in its business.

The BSX said in a statement: "The Bermuda Press (Holdings) Limited, has confirmed to the Exchange details of several agreements regarding the construction and leasing of the new building, Crown House.

"In a letter to the Exchange the company stated that Crown House Properties Limited, a wholly owned subsidiary of The Bermuda Press (Holdings) Limited, entered into a contract with Sea-Land Construction Limited for the construction of Crown House.

"The total contract value, including adjustments to date, is estimated by the company to be approximately $10,500,000.

"The company confirmed that it and Crown House Properties Limited had made arrangements to borrow up to $11,000,000 in connection with the development of Crown House and had borrowed $10,500,000 of this facility.

"Interest only was paid up to 31st August 2000 at .75 percent per annum over the banks base rate.'' It added that a drawing fee and a commitment fee were also payable and said repayments were by blended equal monthly instalments over ten years commenced with effect from September 1, 2000 at which time interest was fixed at 8.45 percent per annum.The first repayment was made on October 2, 2000.

The release went on: "The company further advised that it had entered into a lease agreement with the accountancy and consulting firm KPMG for the leasing of the top four floors of Crown House.

"The Agreement to lease specifies that there will be a ten year lease with an option for renewal thereafter.''