The Samoa National Provident Fund (S.N.P.F.) has spent more than $2.3 million to buy a new embassy building located in the centre of Brussels in Belgium.
The amount was confirmed by S.N.P.F. C.E.O., Faumuina Esther Lameko-Poutoa, in an email responding to questions from the Samoa Observer.
Faumuina said the new building will house the Samoa Embassy, which currently looks after our relations with the European Union (E.U.), the A.C.P. Group as well as other non- E.U. member states that Samoa has official diplomatic relations with.
“Real estates in Brussels, the capital of Europe, are not cheap especially those around the vicinities appropriate for an Embassy,” she said.
“The advertised price for the property was €675,000. However, after a number of negotiation meetings between the owner and our Embassy, the final agreed price now stands at €575,000.
“It will cost circa (about) €160,000 to transform it to an embassy office.” The above costs – the initial cost of the building plus the renovations - totals $2,339,058.60 tala.
She said the Embassy in the European capitol is engaging several local contractors to provide estimates of the renovation work that needs to be carried out. “As is usual practice, an assessment of the bids will be carried out and the successful contractor will be awarded the contract,” Faumuina said.
“At this stage we envisage renovations to take four-five months to complete.” She said S.N.P.F. had been looking for options to diversify its investments portfolio offshore in the last three years.
“One of the options we considered was to purchase a property to house the Samoa Embassy Office in Brussels,” she said. “S.N.P.F. already has a property in Brussels, which is currently the residence for the Ambassador.
“This has proved to be an excellent financial investment with the latest market evaluation putting the value of the property at around €1.7 million ($5,410,067.51 tala).
“The decision therefore to purchase a second property to house the Samoa Embassy Office was made based on past experience and economic considerations.”
Faumuina said the property, located in the central area of the European Capital, was bought without the Fund viewing it. She said instead, a full description of the building and pictures were sent to the S.N.P.F. and Cabinet.
<script type="text/javascript"><!--
google_ad_client = "ca-pub-2469982834957525";
/* Left 300X250 */
google_ad_slot = "8433753430";
google_ad_width = 300;
google_ad_height = 250;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script> {/googleAds}
“However, our Ambassador in Brussels has seen the property with the view to assessing its suitability based on a number of factors including cost, proximity to the European Commission, the A.C.P. Secretariat and other diplomatic missions,” said Faumuina.
“Samoa’s Ambassador in Belgium is acting on behalf of S.N.P.F. and the Government of Samoa.”
She said S.N.P.F. members can expect a five per cent return for the first three years and this will increase over time as the rent is reviewed and the building cost is depreciated.
“The value of the investment is expected to increase in the future,” said Faumuina. She said the decision to purchase the building was based on a number of factors including the importance of our current and future relations with the E.U.
“And rental rates in Brussels are very high and this trend is likely to continue into the foreseeable future,” she said.
“For example, the rental rate for the Embassy increased by 15 per cent from 2011 to 2012.
“It is also the case that over the last 30 odd years rent paid by Government is considered ‘lost’ money.
The investment allows S.N.P.F. to “diversify its investments offshore for long term returns while working in collaboration with government.
“Funding a new property to house the Embassy is, therefore, a sound financial/ economic decision in terms of securing an ‘asset’ for NPF-Government in the future.”
Faumuina said the Provisional Sales Agreement was signed on March 31 between the owner and the Ambassador on behalf of the Government of Samoa.
“The Sales Deed is expected to be signed by late May 2014 after the Samoa notary has completed the normal legal requirements in Belgium,” she said.
According to Faumuina the new property is located in a very central area of Brussels with easy access to the A.C.P. (African, Caribbean and Pacific) House and the European Commission.
“The building has three floors, an attic, small garden and cave,” she said.
“Total useable area space is about 395 square meters.”
<!-- ads-articles(24.03.14) -->
<ins class="adsbygoogle"
style="display:inline-block;width:336px;height:280px"
data-ad-client="ca-pub-9419815128221199"
data-ad-slot="2395638412"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script> {/googleAds}