A 15-year lease arrangement between Discovery and property groups Growthpoint and Zenprop sees the insurer fork out R23m per month in rent for its Sandton headquarters.
Growthpoint owns 55% of the property‚ while Zenprop owns the other 45%.
The building has a large gymnasium facility and a host of other amenities.
In a statement given to TimesLIVE‚ Discovery confirmed that the new building now houses Discovery Bank‚ Insure‚ Invest‚ Life and Health‚ as well as the Vitality Group. These divisions were previously housed in five separate buildings.
Discovery said it was important to have all their employees under one roof. ‘The decision to consolidate all of our premises into 1 Discovery Place was based on Discovery’s commitment to keeping our people together‚ and to creating open spaces that foster our values. The new working environment has been designed to provide optimal space for creativity‚ connection and growth‚” said the company.
There has been a strong reaction to the news on social media. Users took to Twitter to share their thoughts‚ with some questioning how a company as big as Discovery does not own a building. Here are some of the reactions:
The Economist has recently declared that the goal of maximizing shareholder value, i.e. making money for shareholders, is “the biggest idea in business.” Today, “shareholder value rules business.”
— Nyiko Baloyi (@iyolab) February 20, 2019
Someone with a brain please explain to me why Discovery wouldn’t own that building as a giant insurer?
— Thabiso Tshabalala (@Thabiso_XT) February 19, 2019
Discovery is renting that humongous building in Sandton for R23 million a year. Their rental agreement is for 15 years and get this. They won't own it after the 15 years. A new rental agreement will be drawn up.
— Noks Vezi (@Nokseezy) February 19, 2019
Almost every cooperation shoves Discovery down our throat. Consultants every where to get the newly employed to sign up😊
Discovery can definitely afford R23M rent.
— Portia Gumede (@portiagumedesa) February 19, 2019
Discovery is paying R23 Million on rent per month 🙆🏾♂️🙆🏾♂️ no wonder why medical aid is so expensive.
— TheHealingComponent (@Bantse_R) February 19, 2019
That Growthpoint and Discovery rent deal smells corruption
— Ntuthwane (@_uZamo) February 19, 2019
This R23 million rent is making me sick. Discovery is playing with money
— Shadi Letoaba (@ShadiL_) February 19, 2019
By: Cebelihle Bhengu
Source: TMG Digital