Discovery announces the purchase of its head office, 1 Discovery Place, in Sandton
Image: Supplied
The Discovery Group has announced the purchase of its head office, 1 Discovery Place, located in the Sandton business hub.
The transaction, at R4.05 billion, will result in an immediate and growing net annual cash‑flow saving, with a net present value benefit of approximately R800 million over the remaining lease period, in addition to securing long‑term ownership of a landmark asset.
However, with just seven years remaining on the existing lease, the evolving financial dynamics, including lower interest rates and decreased commercial property prices in Johannesburg, have allowed Discovery to capitalise on market conditions.
By moving to owned premises, Discovery foresees immediate and increasing net annual cash-flow savings, alongside a significant net present value benefit estimated at R800 million over the remaining lease term. This decision secures long-term ownership of an asset that has become synonymous with the company's culture and ethos.
“1 Discovery Place has served us exceptionally well. It’s where our culture comes to life and where people from around the world experience Discovery first-hand,” said Adrian Gore, Chief Executive of Discovery.
“Purchasing the building reflects our long-term outlook, the strength of our Group, and our deep pride in our South African roots. Our plans are made with permanence in mind.”
IOL