which will replace the now-demolished Bermudiana Hotel.

The Development Applications Board yesterday announced that XL Property Holdings Ltd. had cleared the next hurdle in its path to building a five storey office building with underground parking at the site of the old Bermudiana Hotel.

EXEL Ltd.'s senior vice president Gavin Arton said: "We are obviously very pleased.

"As soon as the current site preparation finishes, I presume we will commence with building but I can't say when that will be.'' EXEL plans to move into and begin operating from the new building by January, 2001.

The site will provide global headquarters for EXEL and another Bermuda-based insurance giant, ACE Limited.

ACE lodged its final plans for the four-storey office building earlier this week.

The development is a joint effort by ACE and EXEL who bought the site in a deal valued at around $18 million, after acquiring Winson Holdings through a Private Member's Bill in 1996.