Discovery gets the nod to spend R4 billion to buy its own office – with its own Woolworths

·11 Mar 2026

Discovery’s plan to acquire its massive Sandton office from Growthpoint Properties has received the Competition Commission’s approval.

Discovery moved into its office in 2018. It believes it will remain at the office park for more than the next seven years, when its current lease expires.

Discovery said that the move also accounts for the long-term, strategic nature of office planning, especially given the scale of Discovery’s Johannesburg operations.

“The group is deeply committed to South Africa and believes the head office has served the group well in all aspects and aligns with its purpose, values, and its long-term outlook,” said Discovery.

The company’s plan to acquire its office park has now received approval from the Competition Commission, which recommended that the Competition Tribunal approve the transaction.

The deal will see Discovery Propco acquire Discovery Phase 1, which includes the Grove and Park buildings of 1 Discovery Place.

The financial services provider will also cancel the lease for Phase 2 at the Ridge building. Under the deal, Growthpoint will acquire Phase 2 from fellow owner Truzen.

Discovery said the total consideration for the transactions on its side is R4.05 billion, with the deal fully funded by debt.

From Growthpoint’s perspective, the sale of Discovery Phase 1 (its 55% share) and the acquisition of Discovery Phase 2 (Truzen’s share 45%) stand at the following:

Discovery Phase 1 disposal proceeds of R2,317,500,000 with a GLA of 50,466 sqm
Discovery Phase 2 acquisition price of R323,100,000 with a GLA of 19,369 sqm.

Speaking on the financial results, Growthpoint CEO Estienne de Klerk says the sale made sense for the group, as it reduces the risk that a large tenant cancels their lease, which would pose a challenge to replace them.

Growthpoint said that Discovery Phase 2 is a prime, P-grade, multi-tenanted office building, offering improved income diversification and reduced letting risk compared with single-tenant assets.

Net proceeds of R1.9 billion for Growthpoint will be used to settle debt, with an estimated 0.8% decrease in the South African loan-to-value.

The move will also reduce Growthpoint’s Sandton office exposure by 2.4%, leading to total office vacancies increasing by 0.4% and Sandton vacancies increasing by 2.6%.

“These transactions are consistent with our ongoing capital allocation discipline and our approach to
actively manage the composition of the domestic portfolio,” said Growthpoint.

1 Discovery Place is a massive office park and has several other amenities, including a Home Affairs office for passports and Smart ID renewals and a Woolworths.