Govt. buys Gold Star building for $7million
The Accident Compensation Corporation (A.C.C.) has bought the Gold Star Building for $7million tala.
And the Minister responsible, Lautafi Fio Purcell, is confident the government will generate good returns from its investment.
The purchase was confirmed by the Minister during an interview with the Samoa Observer yesterday.
“I can confirm that the Accident Compensation Corporation is buying the building at that cost ($7million),” Lautafi said.
“The market price given to us at first was $9.5million but we have managed to bargain down a lot...I mean we had to really bargained hard."
“In fact the family was nearly at a point where they did not want to sell their property (to A.C.C.)”
Lautafi said the purchase had to be approved by Cabinet first and foremost.
“The A.C.C. wants this (building) so that they use it to generate more money,” he said.
“The building is fully occupied by ten tenants and they are very good tenants."
“The money that the A.C.C will receive from the building is way better than taking this money and depositing it in the bank for return."
“This is a good investment for our people.”
Lautafi said there are other options the government is looking at to generate more profits from the building.
“That includes a car park on the top, or possibly set up other shops if ... but that is for the future, it all depends."
“As you can see the building is right in the middle of town and so people are buying stuff everyday.”
The property was up for sale at the beginning of February this year.
The Corporation’s mission is to create a sustainable accident compensation scheme and to be more responsive to the needs of the scheme beneficiaries.