Govt Intends To Buy Compass Point Building
The Government intends to purchase the Compass Point Building on Bermudiana Road, Minister of Public Works and Environment Jache Adams said, adding that the building “provides over 81,000 square feet of structurally sound office space” and the negotiated purchase price is $14.5 million.
Speaking in the House of Assembly today [May 29] the Minister said, “I rise this morning to inform this Honourable House of the Government’s intention to purchase the Compass Point Building, located on 9 Bermudiana Road, Pembroke, as part of a broader effort to modernise government operations, reduce long-term rental costs, improve public service delivery, and strengthen the Government’s long-term financial position.
“The Government continues to spend substantial sums each year on commercial rent without creating a lasting public asset in return. In the 2026/27 financial year alone, projected spending on commercial rent is expected to approach $11 million, excluding utilities and service charges.
“The Compass Point Building provides over 81,000 square feet of structurally sound office space, supported by reliable infrastructure, backup power capacity, and the ability to create synergies by accommodating multiple interconnected government departments under one roof.
“This is not simply about moving departments into a new building,” the Minister said.
“When departments that work closely together are located in one place, coordination improves, services become more streamlined, delays can be reduced, and members of the public are better able to access government services without navigating multiple locations.
“The negotiated purchase price for the Compass Point Building is $14.5 million.
“I recognise that this represents a significant investment, but the alternative is to continue spending millions of taxpayer dollars year after year on rent while maintaining a system that we already know is fragmented and inefficient.”
The Minister’s full statement follows below:
Mr. Speaker, I rise, this morning, to inform this Honourable House of the Government’s intention to purchase the Compass Point Building, located on 9 Bermudiana Road, Pembroke, as part of a broader effort to modernise government operations, reduce long-term rental costs, improve public service delivery, and strengthen the Government’s long-term financial position.
At its core, this proposal is about a simple principle: The Government should spend taxpayer funds responsibly, operate efficiently, and build long-term public value wherever possible.
Mr. Speaker, Government office accommodation is currently spread across a combination of government-owned buildings and privately leased commercial space, primarily within the City of Hamilton. This fragmented arrangement creates inefficiencies, increases costs, limits coordination between departments, and makes it more difficult for the public to access services.
At the same time, the Government continues to spend substantial sums each year on commercial rent without creating a lasting public asset in return.
In the 2026/27 financial year alone, projected spending on commercial rent is expected to approach $11 million, excluding utilities and service charges.
Mr. Speaker, that is a significant recurring expense.
Leasing will always have a role to play. However, continuing indefinitely with this level of dependence on private rental accommodation is neither financially sustainable nor operationally efficient. We are equally mindful that every dollar spent on rent is a dollar not directed toward roads, housing, public services, or other national priorities.
It is also important that the Government plans are not only for today’s pressures, but for the future as well.
For that reason, the Notice of Motion I will put before this Honourable House later today is not simply about acquiring office space. It is part of a broader strategy to modernise the way the government operates, improve working environments for public officers, and create infrastructure that supports more effective service delivery over the long term.
Mr. Speaker, the public should know that as part of our analysis the Government looked into several options including constructing a new government office complex.
However, it was determined that a project of that scale would require a substantial upfront investment and several years of planning, approvals, procurement, and construction before becoming operational.
During that time, the Government would still be required to maintain its existing leased accommodation and continue paying millions annually in rental costs while awaiting completion.
For those reasons, constructing a new facility is not considered the most timely or cost-effective solution to the issue before us.
Mr. Speaker, the proposal being advanced is practical and immediate in its impact.
The Compass Point Building provides over 81,000 square feet of structurally sound office space, supported by reliable infrastructure, backup power capacity, and the ability to create synergies by accommodating multiple interconnected government departments under one roof.
Mr. Speaker, this is not simply about moving departments into a new building.
When departments that work closely together are located in one place, coordination improves, services become more streamlined, delays can be reduced, and members of the public are better able to access government services without navigating multiple locations.
This strategy also creates an important opportunity for the Government to address the condition of aging public buildings.
The purchase of Compass Point will create the swing space necessary for the Government to temporarily relocate departments from older facilities, allowing comprehensive refurbishment works to begin on those aging buildings.
In many cases, major renovations cannot be completed effectively while buildings remain occupied and operational. The additional swing space will create capacity for the Government to fully vacate certain aging facilities, undertake major modernisation works more efficiently, and return departments to improved working environments once renovations are complete.
Mr. Speaker, Public officers should be able to work in safe, modern, and functional environments that support quality public service delivery and reflect the value we place on the people who serve this country every day.
Improving the condition of government buildings is part of improving the quality of government itself.
Mr. Speaker, the negotiated purchase price for the Compass Point Building is $14.5 million. Independent advice has been considered as part of this process, and the Government is satisfied that the agreed price reflects fair market value.
However, it is worth noting that the decision is not based on purchase price alone.
The broader consideration is long-term financial sustainability.
By consolidating departments into this facility, the Government expects to reduce private rental costs by at least $2 million annually, in addition to operational efficiencies associated with shared infrastructure, utilities, and support services.
Mr. Speaker, I recognise that this represents a significant investment, but the alternative is to continue spending millions of taxpayer dollars year after year on rent while maintaining a system that we already know is fragmented and inefficient.
This proposal takes a different approach. It is about operating more efficiently, improving access to government services, and reducing long-term costs to taxpayers. Most importantly, it is about creating greater financial flexibility for the Government to invest in the priorities Bermudians care about most such as infrastructure, public services, housing, and other community needs.
Mr. Speaker, no single decision will resolve every challenge facing this country. However, responsible decisions made consistently over time place governments in a stronger position to meet those challenges effectively.
This proposal is intended to do exactly that.
It is a practical step, a considered step, and I believe a responsible step in the best interest of the people of Bermuda.
Thank you, Mr. Speaker.
How can spending $14.5M for an office building even be up for discussion? Bermuda’s been drowning in debt for way too long. Our children and grandchildren will never thank us for what fiscal irresponsibility.
Isn’t better using the money on our declining health services, our roads and stomping out our crime situation than spending $14.5 million on a building that may be half empty or if leased out going to cost the successful applicant high rent charges? Would there be a rent rate for friends and families of the PLP, versus the ordinary business company. You bet there will be.