Investec to buy back its head office for R2.2bn

Labelled as a "surprise move" by Business Day, Investec's purchase of its head office buildings (which it sold to Growthpoint some years back) is entirely logical. At Alchemy we believe in companies owning their core properties and leasing their satellite locations.

In a (admitedly dated) UK study done by Cass Business School in London, it found that listed companies which leased 60-80% of their premises achieved a 71% better return over the 14 years to Dec 2002, than those that leased <60% of their facilities. Their conclusion was that where companies lease their premises, they seem to manage it more effectively than when they own it, and this efficiency is rewarded by the markets.