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Dis-Chem founders sell head office to group for R500m

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The two founders of Dis-Chem, along with other directors and prescribed officers at the group, have sold its head office and Midrand distribution centre to the group in a transaction valued at nearly half a billion rand.

Last year, the pharmacy group paid nearly R55 million in rent for this space, around R4.6 million a month.

The group says: “The transaction will ensure that Dis-Chem owns all its core distribution centres, as well as its head office premises in Midrand. The ownership of the asset is a long-term strategic objective of the group that has a positive impact on the income statement and a minimal impact on the balance sheet.”

Dis-Chem has drawn sharp criticism for the ownership of its distribution centres by related parties.

This peaked during the Covid-19 pandemic in April 2020 when Dis-Chem withheld rent for its retail outlets due to the lockdown.

It contended that it had paid “a fair and significant portion of the base rental together with suggesting a turnover-based rental” given that it was not able to sell goods deemed as non-essential, which trade at higher margins.

For more details on this story visit www.moneyweb.co.za