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HSRC Annual Report 2016/17
7.1 Operating lease arrangements as the lessee:
7.1.1 Future minimum lease payments
2017
Carrying
amounts
R ‘000
2016
Carrying
amounts
R ‘000
Up to 12 months
Cape Town lease
7,968
2,101
Durban lease
1,555
1,440
Port Elizabeth lease
306
437
Sweetwaters lease
143
130
CSIR – disaster recovery site
38
69
10,010
4,177
One year to five years
Cape Town lease
13,073
-
Durban lease
1,090
2,645
Port Elizabeth lease
-
306
Sweetwaters lease
502
645
CSIR – disaster recovery site
-
35
14,665
3,631
7.1.2 Other disclosures
Cape Town lease
The HSRC leases office space from Bursa Property Investments (Pty) Ltd at 116 Buitengracht Street, Cape Town, Erf 9442,
measuring 975 square metres, with nine floors at Merchant House. The agreement is for a three-year period effective
from 1 October 2016 and concluding on 30 September 2019. The current lease payment per month is R638,450.00
(VAT excluded). The contract includes an annual escalation of 8% (compounded) annually. The HSRC does not have the
option to acquire the building at the end of the lease agreement but has an option to renew the lease agreement. A
tenant installation amount of R3.2 million was granted with R2.2 million refundable should the HSRC not exercise the
renewal option after the initial contract term.
Durban lease
The HSRC leases property in Durban from Roelan Trading 45 (Pty) Ltd situated at Erf 21 (of 1) of Erf 2128 Durban, Portion
16 of Erf 2133 Durban, Portion 18 (of 1) of Erf 2128 Durban, Rem of Portion of Erf 2133 Durban. The lease agreement is
for three years effective from 1 December 2015 and expires on 30 November 2018. The contract includes an escalation
clause of 8% (compounded) annually. The current lease payment per month is R126,204.69 (VAT excluded). The HSRC
does not have the option to acquire the building at the end of the lease agreement but has an option to renew the
same lease agreement.
Port Elizabeth lease
The HSRC leases a property from the Growthpoint Securitization Warehouse Trust (The ownership of this property was
transferred to Africorp International Properties (Pty) Ltd effective 12 February 2016), situated at Mount Road, Fairview
Office Park, Port Elizabeth. The lease agreement is effective from 1 November 2014 and expires on 30 November 2017.
The current lease payment is R30,229.42 per month (VAT excluded). The contract includes an annual escalation of 8%
(compounded) annually. The HSRC does not have the option to acquire the building but has an option to renew the
same lease agreement . The HSRC also leases a property from Monsoon Partnership for HIV Research studies (research
project), situated at Rink Street, First Floor, Port Elizabeth, the lease commenced on 1 December 2015 and expires on
30 November 2017. The current lease payment is R7,950.00 per month (VAT excluded).The contract includes an escalation
of 6% (compounded) annually. The HSRC does not have the option to acquire the building but has an option to renew
the same lease agreement.