Negotiations for the sale of the 15-storey Post Office building in Govan Mbeki Ave to the South African Revenue Services are under way.

Although neither SARS nor the Post Office would confirm the impending sale on Wednesday, a senior source said talks were continuing.

Telkom, which was one of the last remaining tenants in the impressive yet badly underutilised building, closed shop there last month.

But, according to the group's senior manager in Cape Town, John Coaton, the decision to move office was purely a business one, spurred on by a decline in sales revenue. Coaton said because the Telkom Govan Mbeki branch was not getting an adequate number of customers visiting the retail side of the business, a decision had been taken to relocate to the western suburbs, where there had been phenomenal growth in business over the past decade.

Two retail outlets have since been opened - at the Walmer Park Shopping Centre and in Walker Drive.

"Five to 10 years ago, the post office was a good venue, but with time we have seen a significant drop in customers, hence our decision to relocate," he said. Telephone accounts could still, however, be paid at the post office, he said.

According to The Herald source, the SARS intends buying the building, which also has three basement floors, for its regional head office.

Attempts on Wednesday to get officials at SARS head office in Pretoria to comment were unsuccessful.

SARS in Port Elizabeth currently occupies a six-storey building at St Mary's Terrace behind the city's main library.

SA Post Office general manager Daniel Nyamazane, based in Cape Town, also would not confirm that there were talks between the relevant parties "at this stage".

The decision by Telkom to move office comes at a time when economists and property developers have hailed proposed tax incentives for the city's urban development aimed at revitalising the CBD.

The incentives will cover costs incurred in the erection, extension or improvement of commercial and residential buildings, but not those of an industrial nature.

The past two years have already seen two landmark buildings in the city - Sanport and Norwich Centre - sold at give-away prices.

Another Port Elizabeth landmark - the eight-storey Trust Bank building in North End - was auctioned for R1,5-million.

Eastern Province Herald

Publisher: Eastern Province Herald
Source: Eastern Province Herald