By Noxolo Majavu
Exemplar REITail’s construction activity was in overdrive this year, propelled by the expansion of Theku Plaza and the completion of the Mbhashe LG Mall as retailers continued to deliver inflation-beating growth across all categories.
The group has more than 100,000m² of new gross lettable area under development across three provinces, alongside a pipeline of refurbishment and expansion projects designed to strengthen and modernise its retail portfolio.
Its community-focused shopping centres in peri-urban and rural nodes saw an average annual like-for-like turnover growth of 7.16% across the portfolio, underlined by the outperformance of smaller centres compared with larger regional and super-regional malls, according to the South African Property Owners Association retail trends report.
The group’s annual report shows grocers achieving a 6.94% increase and fashion retailers up 6.14%, while fast-food outlets — often a bellwether for discretionary spend — recorded a 12.94% increase.
The developments under construction are owned by both Exemplar and McCormick Property Development and include Leratong City in Kagiso, Dan City Mall in Tzaneen, Etwatwa Crossing in Gauteng, Ntuzuma Mall in Durban, and the redevelopment of iTonka Square in Springs.
Exemplar has cemented its presence in peri-urban and rural markets, using these developments to tap into high-demand nodes.
Mbhashe LG Mall, which started trading in about March this year, is now the third asset to be developed by Exemplar within the Eastern Cape, following KwaBhaca Mall and Bizana Walk.
“Corporate confidence received a boost as interest rates began to ease from their highest levels since Exemplar listed. From the first rate cut, market sentiment improved, and we saw retailers’ trading figures stabilise and start to pick up,” the group said.
Data from the national Clur Index showed that community and smaller centres led the gains with 6.6% growth, followed by regional centres at 6.1%. In terms of expansion versus December 2024, regional centres posted the largest increase at 3.5%, with community and smaller centres growing 2.8%.
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