Buffalo City buys Old Mutual building

Posted On Friday, 30 April 2004 02:00 Published by eProp Commercial Property News
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Buffalo City Municipality has bought the five-floor Old Mutual building on the corner of Oxford and Terminus Streets for R7,4m.

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The purchase was made to relieve office space constraints at the municipality.

"The municipality is in the process of taking transfer of the buildingfrom Old Mutual'',  municipal spokesperson Darby Gounden said last night.

"We are currently undertaking some internal refurbishments of the buildingand occupation should take place in the beginning of June2004."

Gounden confirmed that the municipality's current building would beoccupied by the finance and development planning directorates of the landadministration department.

These directorates are currently housed at the Trust Bank building,which is being rented by the municipality.

Gounden said the tenants at the building would soon be served with noticesto vacate.

Early in February the Daily Dispatch reported that the municipalitywas set to buy the Old Mutual Builing.

The municipality called prospective firms, individuals and institutionsto tender for office accommodation last July.

But the tenders received did not meet the requirements, and the municipalityopted to purchase the building instead.

At the time of the call for tenders Buffalo City manager Mxolisi Tsika said the Trust Bank building was not adequate - the acquired floors werealready full and the municipality had been allocated extra functions.

The directorates of engineering, finance and planning needed space.

The idea of the municipality getting its own building was mooted bycouncillors in February2003.

Tsika then said it was the municipality's aim, but it was expensivebuilding one - about R150m, according to a preliminary investigation.

Although the Old Mutual building could ease the office space shortage,additional space is still needed for the engineering directorate.

Recently the social services directorate took occupation of another building in Oxford Street bought by the municipality.

Last modified on Thursday, 22 May 2014 19:17

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