HSRC Integrated Annual Report 2018/2019

HSRC INTEGRATED ANNUAL REPORT 2018/19 / 111 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued) 7.1.2 Other disclosures Cape Town lease Agreements The HSRC leases office space from Bursa Property Investments (Pty) Ltd at 116 Buitengracht Street, Cape Town, Erf 9 442. The agreement is for a three year period effective from 1 October 2016 and terminates on 30 September 2019. The current lease payment per month is R750 286.80 (VAT excluded). The contract includes an annual escalation of 8% (compounded). 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. The HSRC is in the process of renewing this lease agreement. The HSRC also leases a property from Immobilier Lucratif (Pty) Ltd situated at 83 Castle Street, unit 4B Castle Gate, Cape Town. The lease commenced on 1 December 2015 and expired on 30 November 2017, the lease was subsequently renewed on 1 December 2017 for a period of 10 months ending 30 September 2018.The contract has been extended for a period of six months until 31 March 2019. The current lease payment is R13 975.50 per month (VAT excluded). The contract includes an annual escalation of 10% (compounded). The HSRC does not have the option to acquire the building. Durban Lease Agreement The HSRC leases property in Durban from Roelan Trading 45 (Pty) Ltd situated at Erf 21 of Erf 2 128 Durban, Portion 16 of Erf 2 133 Durban, Portion 18 of Erf 2 128 Durban, Remainder of Portion of Erf 2 133 Durban. The initial lease agreement was for three years effective from 1 December 2015 and expired on 30 November 2018. The lease agreement was renewed for a further three years, expiring on 30 November 2021. The contract includes an annual escalation clause of 7% (compounded). The current lease payment per month is R108 127.15 (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 lease agreement. Port Elizabeth Lease Agreement The HSRC signed a lease agreement for office space with Luprop Investment, situated at Building No.1, 1 st floor, Ascot Office Park, 1 Ascot Road, Greenacres, Port Elizabeth. The lease period was from 1 January 2018 and expired on 31 March 2019. The lease payment was R15 868.10 per month (VAT excluded). The HSRC did not have the option to acquire the building and did not exercise the option to renew the lease agreement. The Port Elizabeth office was closed. East London Lease Agreement The HSRC had a rental agreement with Social Health Empowerment Feminist Collective, for the rental of an interviewing site, located at 92 Currie Street, 1 st floor Monogramics building, East London, for the purposes of the Trans Women HIV Bio-Behavioural Survey. The duration of the agreement was initially from 1 January 2018 expiring on 30 September 2018. The contract was extended until 31 March 2019. The rental payment per month was R6 068.96 (VAT excluded). The HSRC did not have the option to acquire the building at the end of the agreement. Sweetwaters Lease Agreement A lease agreement was signed between the HSRC and Mr FA Bhayla in respect of a property referred to as Sweetwaters Bus Depot. The agreement came into operation on 1 March 2008 and was valid for 5 years. The lease agreement was renewed on 1 March 2013 for an additional three years, and expired on 29 February 2016, after which it was renewed for a further five years, expiring on 28 February 2021. The current lease payment per month is R14 265.60 (VAT excluded). The contract includes an annual escalation of 10% (compounded). The HSRC does not have the option to acquire the building. Pretoria Lease Agreement The HSRC leases a property from Trenjil Investment situated at 260 Charlotte Maxeke Street, Unit 1, Mitchell, Pretoria West. The lease commenced on 1 December 2016 and expired on 31 December 2017. It was renewed for a further one year commencing on 1 January 2018. An additional year was added and the lease expires on 31 December 2019. The current lease payment is R27 500.00 per month (VAT excluded). The HSRC does not have the option to acquire the building but has an option to renew the same lease agreement.