The Government is “preparing the groundwork” for the first phase of construction at Morgan’s Point to turn unfinished buildings into new housing units.

Delivering the 2024-25 Budget Statement, David Burt, the Premier and Minister of Finance, listed work on Morgan’s Point as one of three major projects that would help to bolster employment in construction.

He told the House of Assembly: “Over the last year, we have been preparing the groundwork to commence the development phase of this project and immediately add high-end housing stock to the country as support for the significant demand from our growing international business sector.

“The addition of rental capacity by way of the completion of partially constructed buildings is the best way to begin to reclaim value at the site, with the lowest execution risk.

“It also supports the work of design and development of a wider spectrum of rental units on site to address the pressing housing needs at all levels.”

Mr Burt added that the Government was “working to finalise the Morgan’s Point Development Company Board, and discussions with banks about financing for the first phase of the project had begun”.

He said that the first phase would involve the completion of the first five buildings that have already been partially completed to create 35 housing units.

“Importantly, it is the view of the Government’s advisers that this initial phase of the project will not incur any additional expense to the Government, and once completed and rented, the cashflows from this phase will exceed the cost of repaying the incremental borrowing, which is the approach intended at each following phase,” Mr Burt said.

Legislation to create a government-owned company to oversee the redevelopment of the 37-acre property was passed in the House of Assembly in 2022.

The Premier announced in last year’s Budget Statement that the Government planned to convert the failed Caroline Bay hotel project into a residential development and retail complex.

He also highlighted that the construction sector would be bolstered in the coming year by work at the Fairmont Southampton and the construction of the new Brookfield building on Front Street.

Mr Burt said: “We have all heard the announcements from the developer regarding work starting at the Fairmont Southampton Hotel, and I know that all residents eagerly anticipate the site renovation works and eventual reopening of this hotel.

“The projections are that this project will create 700 jobs during its construction phase, which is scheduled to last for 15 months.

“Demolition works have also commenced on Front Street for the new Brookfield building, and this job is projected to add 200 jobs over the next 18 months.

“This will deliver a modern building, removing boarded-up windows and replacing them with prime retail and office space. This investment by Brookfield is a vote of confidence in Bermuda.”

Westend Properties said that ground was broken at the Fairmont Southampton Beach Club site in January, and preliminary preparations are under way for refurbishments at the hotel itself.

The company said it is hoped that the beach club will be ready to open next summer, while the hotel’s public areas and half of its rooms are expected to be in a position to welcome guests by the end of 2025.

Demolition work has begun for the construction of the nine-storey Brookfield building to house the new global headquarters for Brookfield Reinsurance and the company’s Bermudian-domiciled listed affiliates.

The new building, expected to be completed in early 2026, will also include retail spaces at the ground floor and along Chancery Lane.