A Massive Shift in South African Retail Property

The South African commercial property market is experiencing an exciting wave of high-value sales. Several iconic shopping malls across the country are changing hands for hundreds of millions of rands.

Despite a challenging broader economy, major property investors are shifting their focus. They are strategically selling off older, suburban assets to invest heavily in high-growth, income-generating areas.

The R1.6 Billion Woodlands Boulevard Mega-Sale

One of the biggest recent deals took place in Pretoria. JSE-listed real estate company Hyprop agreed to sell a 50% stake in the famous Woodlands Boulevard shopping center.

This popular mall was independently valued at a massive R1.6 billion. The purchasers, which include Primegrowth Retail Property and Twin City Trading 2, will pay R790.50 million for their half.

• Key Woodlands Boulevard Facts:
  • Opened in 2004 and has served over 140.5 million repeat shoppers.
  • Features a massive gross lettable area of 73,471 square meters.
  • Hyprop plans to use the cash proceeds to pursue new, strategic investment opportunities.

Historic Hatfield Malls Find New Owners

In another major Pretoria deal, the Competition Commission gave the green light for four Hatfield shopping centers to be sold. The properties were sold by Hatvest to Bright Ally Investments Enyuka Prop Holdings.

Enyuka specializes in rural and peri-urban retail properties in South Africa. The largest property in this sale is the famous Hatfield Plaza Shopping Centre, a 20,600 square meter staple in Pretoria’s student district.

Since 1991, this community mall has served the many students and academics living near the University of Pretoria campus. The center boasts 70 stores, including major brands like Pick n Pay, Woolworths, and Clicks.

Why Township Malls Are the New Goldmine

While traditional suburban malls are seeing slower growth, township and rural retail centers are absolutely booming. Property investors are actively chasing the sustained, non-discretionary consumer demand found in these under-serviced areas.

According to the MSCI South Africa Real Estate Annual Index, township retail was the highest-returning retail sub-type in 2025, delivering an incredible 17.8% return. In contrast, suburban retail has significantly underperformed.

The performance gap between township and suburban retail is widening rapidly. This is driven by high demand and supply scarcity in township nodes, making them highly attractive to investors.

Exemplar REITail’s R356 Million Shopping Spree

Leading the charge in this sector is Exemplar REITail, a company focused entirely on township and rural retail. They recently announced a massive R356 million strategic expansion to consolidate their grip on the market.

Exemplar’s latest highly-profitable acquisitions include:

• Vosloorus Crossing (Gauteng): Bought for R177 million, this 10,323 sqm center sits directly next to their flagship Chris Hani Crossing Mall.
• Steelpoort Retail Precinct (Limpopo): Acquired a 50.38% controlling stake for R112.2 million, with huge plans to expand the center to 43,000 sqm.
• Tonk Meter Crossing (Gauteng): A 50% stake was bought for R67 million, which is currently being expanded and rebranded as iTonka Square.

Mamelodi Square Hits the Jackpot

Exemplar is also taking full ownership of another massive local project. JSE-listed Putprop is selling its 50% share in Mamelodi Square to Exemplar for R148 million.

Because Exemplar already owned half of the mall, this massive deal brings their total ownership to 100%. The 16,955 sqm mall originally opened its doors in October 2022 and has proven to be highly profitable.

This aggressive growth strategy in the township sector is paying off perfectly for Exemplar. The company recently reported a massive 15.3% growth surge in their full-year distribution to shareholders.