Discovery’s insane rent at its R3 billion Sandton headquarters

Financial services giant Discovery Group is paying R23.3 million a month to rent its plush global headquarters in Sandton, according to a Netwerk24 report.

The annual fee equates to R280 million, and is set to escalate dramatically over the following 15-year lease agreement it has with Growthpoint, who is the majority shareholder of the development, which cost R3 billion to build.

Discovery will not own the building after the 15-year lease period ends, and will need to draw up a new agreement, once the current contract comes to an end.

According to the report, Growthpoint will make as much as R7 billion over the next 14 years from Discovery, with rent set to increase to R400 million annually by by 2022 (R33.3 million per month), and to R600 million, or R50 million, per month, by 2028.

The building is home to as many as 7,000 Discovery employees, meaning that it costs the company approximately R3,285 each month to rent space for each worker.

Discovery 1 is also home to a Woolworths, located on the ground floor foyer.

Discovery is set to shake up the banking industry when it officially launches its digital bank next month.

In November 2018, the financial services group showcased its digital-only banking product, which aims to make banking more efficient, and move away from traditional banking silos through introducing rewards-based incentives to encourage behavioural change when it comes to money.

Discovery CEO, Adrian Gore said that the bank will go into a beta-testing phase, with an eye to launch to the public in March 2019.

He said that the “soft spot” for accruing customers is through existing clients – the bank has 300,000 card customers, and just over two million Discovery customers in total. Gore said that the bank could develop a very loyal market.

Images at Boogertman + Partners

Read: Discovery to invest R270 million more into new bank ahead of launch next month

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Discovery’s insane rent at its R3 billion Sandton headquarters