Malls can fill an important social role in township communities, where there are often limited entertainment options, says Exemplar CEO Jason McCormick.
Mbhashe LG mall owner Exemplar specializes in rural and township retail, with peri-urban and rural malls designed to serve as central trading hubs for surrounding communities.
Other than the year-old, state-of-the-art Mbhashe mall in Dutywa with over 80 stores, Exemplar assets in the Eastern Cape include four-year-old KwaBhaca (formerly Mt Frere) Mall, Bizana Walk in Mbizana and Lusiki Plaza in Lusikisiki, developed by McCormick in 2015.
“I see malls evolving beyond just retail and commerce into far more service-oriented spaces,” McCormick said.
“From financial services to digital inclusion, every industry is starting to recognise the scale of the opportunity in this market.
“I see more education facilities and more healthcare services, in particular, because malls are often the most accessible locations for the largest populations in SA.
“There’s a huge opportunity to create more human-centric services and experiences within these centres,” he added.
Nedbank property finance executive Vanessa Murray agreed.
She noted that the expansion of malls in township and rural areas, driven by underlying demographic growth, is also giving rise to new rural precincts.
“As some metropolitan CBDs deteriorate, retail nodes in smaller towns and rural communities are emerging, particularly through high-street retail, supported by growing demand for medical services and schools,” Murray said.
“Malls in these areas are increasingly acting as catalysts for broader development, attracting offices, schools, banks and even public sector infrastructure, and ultimately evolving into integrated communities.”
McCormick said there is growing recognition that township retail is one of SA’s largest consumer markets, particularly from a scale and population perspective.
“If I look back 10 or 15 years ago, many businesses weren’t investing in this segment or including it in their broader strategies. Today, almost every major corporate is looking for a foothold in that ecosystem.
In the next 10 to 15 years, McCormick predicted, the next major shift will be toward experiential and social shopping — making malls places to be, places to be seen, and destinations where families can spend the day together.
Exemplar this week reported a 15.3% increase in distributable income, driven by sustained demand across its portfolio.
This was supported by an aggressive acquisition drive and expansion of space across its malls to deepen its footprint in high-growth township and rural communities.
The group is sharpening its focus on acquisitions and portfolio expansion as it strengthens its position in key retail nodes, positioning its dominant centres to benefit from robust consumer spending patterns that anchor retail in townships.
The group recently acquired Vosloorus Crossing retail centre in Gauteng, adjacent to its flagship Chris Hani Crossing Mall, it said in results for the six months to end February.
After acquiring a 50% stake in Tonk Meter Crossing in Springs, Gauteng, late last year, Exemplar is growing the asset and redeveloping it with a relaunch as iTonka Square scheduled for September.
“Beyond simple acquisitions, these are deliberate, accretive investments focused on deepening our presence in key high-growth nodes and improving asset quality through considered redevelopment of the sites,” McCormick said. — Business Day
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