The McCormick Group, a well-known rural real estate developer, listed Exemplar with assets of about R5.1bn.
Exemplar is run by CEO Jason McCormick, whose family’s company has been a developer in SA for about 35 years, creating and managing rural and semi-urban retail centres.
The fund’s properties were all developed by its biggest shareholder, McCormick Property Development (MPD).
McCormick said MPD continued to develop a significant pipeline of greenfields projects which, if disposed of by MPD, would be offered to Exemplar on a right-of-first-refusal basis.
“This access to a pipeline of value- and yield-enhancing properties is a key differentiator for Exemplar and will contribute to the company’s objective of growing its base of quality assets, earnings and distributions, thereby improving shareholder value,” he said.
Exemplar’s portfolio includes 20 income-generating malls located in peri-urban townships and rural areas of SA. The properties are all internally managed.
Flagship properties include Chris Hani Crossing in Vosloorus, Alex Mall in Sandton’s Alexandra township, Emoyeni Mall in Nelspruit, Blouberg Mall in Bochum and Lusiki Plaza in Lusikisiki.
During the reporting period, Exemplar agreed to acquire Modi Mall and Kwagga after they had been redeveloped.
MPD has a R10bn development pipeline of 26 shopping centres that will be rolled out over the next five years.
In accordance with the agreement, 6,314,284 Exemplar shares would be issued to the vendors on or about November 26. The Kwagga redevelopment was expected to be completed and handed over on or about December 1.
The average vacancy rate across the portfolio was 2.93% of gross lettable area at the end of August.
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