28   COMMITMENTS AND CONTINGENCIES
28.1   OPERATING LEASE COMMITMENTS
   

The Group has entered into the following material lease agreements in South Africa for premises used as offices and distribution centres for pharmaceutical products. These leases represent more than 95% of the lease commitments of the Group.

  Lease 1 Lease 2 Lease 3 Lease 4 Lease 5 Lease 6  
  New Road Durban Cape Town Port Elizabeth Capital Hill
Office Park		 19 Louis Gradner
Street, Cape
Town (4th Floor)		  
Initial lease period (years) 10 12 10 5 2 5  
Ending 30 November 2021 31 October 2022 31 August 2022 31 July 2022 31 May 2019 31 October 2020  
Renewal option period (years) 10 10 5 5 N/A N/A  
Ending 30 November 2031 31 October 2032 31 August 2027 31 July 2027 N/A N/A  
Escalation % 7.3% 8.5% 7.0% 7.0% 8.0% 7.5%  
  2018 
R’000 		   2017 
R’000 		  
Future minimum rentals payable under all non-cancellable operating leases are as follows:        
Within one year 50 388   38 780  
After one year but not more than five years 150 485   164 783  
More than five years 1 455   6 572  
  202 328   210 135  
28.2   CAPITAL COMMITMENTS
   
  2018 
R’000 		   2017 
R’000 		  
Commitments contracted for        
Within one year 32 932   72 202  
Approved but not contracted for 63 258   128 281  
Within one year 60 230   89 853  
Between one and two years 3 028   38 428  
  96 190   200 483  
28.3   GUARANTEES
    The Group has provided guarantees to the amount of R3.3 million at 30 June 2018 (June 2017: R2.8 million)