“McCormick Property Development, a family-owned South African commercial property developer established in 1983, has completed 88 retail developments by concentrating on township, rural and underserved communities, creating a significant presence in the country’s retail property industry. The company’s development strategy, partnership with local communities and relationship with Exemplar REITail highlight the growing importance of accessible retail infrastructure and community-oriented commercial property investment in South Africa.”
McCormick Property Development: The Family-Owned South African Developer Behind 88 Shopping Centres
South Africa’s commercial property sector continues to demonstrate the importance of retail infrastructure beyond traditional metropolitan business districts. One company that has established a significant presence in this segment is McCormick Property Development, a family-owned business that has completed 88 retail developments since its establishment in 1983.
According to Daily Investor, the company has developed shopping centres across townships, rural communities and peri-urban areas, focusing on locations historically underserved by formal commercial infrastructure. Its development strategy has positioned it as an important participant in South Africa’s retail property market, particularly in communities where access to established retailers was previously limited.
The company’s achievements highlight how commercial real estate development can extend beyond traditional investment locations while creating opportunities for retail businesses, property investors and local communities.
A commercial property business built around underserved markets
McCormick Property Development was established by John McCormick in 1983. Its original business opportunity emerged from the limited availability of formal retail infrastructure in many rural and township communities.
During apartheid, restrictions on land ownership and economic participation prevented many black South Africans from accessing commercial property opportunities. Consequently, numerous communities experienced limited access to formal shopping centres and established retailers.
Residents frequently travelled considerable distances to purchase groceries, household products and other essential goods.
McCormick identified the potential for commercial property development in these areas. Rather than concentrating exclusively on established commercial districts, the company pursued partnerships with local entrepreneurs and communities to develop retail infrastructure.
One of its early developments was Giyani Plaza, completed in 1985 in the former Gazankulu homeland. The development incorporated an equity-sharing arrangement involving local community partners.
This approach helped establish a development model combining commercial property investment with community participation.
The company subsequently encouraged established retailers, including Shoprite and Pick n Pay, to establish stores in its developments.
These partnerships helped introduce formal retail services into communities that previously had limited access to national retail brands.
From a single development to 88 completed retail projects
Over the decades, McCormick Property Development expanded its development pipeline and geographic footprint.
The company’s growth accelerated under Jason McCormick, who broadened the development strategy beyond rural communities to include high-density urban townships and peri-urban locations.
This expansion resulted in developments such as Alex Mall in Alexandra, Diepkloof Square in Soweto, Olievenhoutbosch Plaza in Centurion and Blouberg Mall in Limpopo.
According to Daily Investor, the developer has completed 88 retail developments and continues to expand its pipeline.
The company reports three shopping centres under construction and 11 additional projects in its immediate pipeline. Two shopping centres are expected to open in KwaZulu-Natal and Limpopo in 2027.
These developments demonstrate the continuing role of regional and township retail infrastructure in South Africa’s commercial property landscape.
Alex Mall illustrates the township retail opportunity
One of McCormick Property Development’s best-known projects is Alex Mall in Alexandra, Johannesburg.
The shopping centre opened in March 2017 and provides approximately 30,000 square metres of retail space. Its location near the N3 highway and London Road interchange provides access to Alexandra and surrounding communities.
The centre accommodates more than 90 stores, including national retailers, financial services businesses, fashion outlets and food establishments.
Its facilities include extensive parking and taxi infrastructure, supporting accessibility for customers travelling through the area.
Alex Mall illustrates how commercial property can combine retail facilities with transportation and community infrastructure.
The development also demonstrates the importance of location in retail property investment. Shopping centres serving densely populated communities can benefit from convenient access, established customer demand and proximity to transportation routes.
However, long-term performance remains dependent on effective property management, tenant stability, operating costs and the spending capacity of surrounding households.
Exemplar REITail provides a long-term ownership structure
An important element of McCormick’s business strategy is its relationship with Exemplar REITail.
McCormick Property Development focuses on developing shopping centres, while many of the company’s ownership interests in completed properties are held through Exemplar REITail.
This separation distinguishes property development from long-term investment ownership.
McCormick can continue identifying development opportunities and constructing retail infrastructure, while Exemplar provides a structure for holding income-generating commercial properties.
According to Daily Investor, Exemplar REITail was valued at approximately R8.35 billion on the Johannesburg Stock Exchange at the time of publication.
The McCormick family remains its largest shareholder. McCormick Property Development holds approximately 54.27% of Exemplar, with additional shares held by the John McCormick Family Trust.
This ownership arrangement maintains substantial family participation in the investment platform while providing access to listed property investment capital.
The relationship also creates a potential development pipeline for Exemplar, subject to acquisition terms, investment requirements and the commercial attractiveness of individual projects.
Why township and rural retail property matters
South Africa’s retail property market is frequently associated with major shopping centres in Johannesburg, Cape Town, Durban and other established urban locations.
Nevertheless, township and rural shopping centres represent an important component of commercial property infrastructure.
These developments can bring formal retailers closer to customers, reduce travel distances for shopping and create opportunities for smaller businesses operating within commercial centres.
They also provide spaces for financial services, restaurants, pharmacies, clothing stores and other businesses that support everyday economic activity.
For property developers, these locations can offer opportunities to serve established population catchments where formal retail infrastructure remains comparatively limited.
However, the investment case requires careful assessment.
Population density alone does not guarantee commercial success. Household income, consumer spending, transportation access, competing retail facilities and local economic conditions all influence tenant performance.
Developers must also evaluate land ownership arrangements, municipal infrastructure, security, utilities and the availability of suitable anchor tenants.
Tenant partnerships remain central to commercial property performance
Shopping centres depend on relationships between landlords and tenants.
National retailers frequently serve as anchor tenants, attracting customers and supporting the performance of surrounding businesses.
Their presence can strengthen a shopping centre’s appeal, although property owners must maintain a balanced tenant mix to avoid excessive dependence on a single retailer.
McCormick’s history of attracting established retailers into underserved locations demonstrates the importance of tenant partnerships in retail property development.
For tenants, shopping centres offer formal commercial premises, visibility and access to established customer catchments.
For landlords, successful tenant relationships support rental income, occupancy and the long-term financial performance of property assets.
Nevertheless, property owners must continually adapt to changing consumer preferences, competition from online shopping and fluctuations in operating costs.
Development pipeline signals continued expansion
McCormick’s reported pipeline of three developments under construction and 11 additional projects suggests that the company intends to continue expanding its retail property footprint.
The anticipated openings in KwaZulu-Natal and Limpopo during 2027 could strengthen its presence in regional markets.
New developments also create opportunities for retailers seeking additional locations and for property managers responsible for leasing, maintenance and operations.
However, development projects require substantial capital expenditure and careful planning.
Construction costs, financing conditions, infrastructure availability and tenant commitments can influence project viability.
A disciplined approach to development therefore remains essential, particularly in an environment where consumers and businesses face economic pressures.
Commercial property investment implications
McCormick Property Development’s business model provides several lessons for South Africa’s commercial property industry.
First, underserved markets can offer meaningful development opportunities when supported by appropriate infrastructure and tenant demand.
Second, partnerships with communities can help establish local participation in commercial property development.
Third, separating development activities from long-term property ownership can provide greater strategic flexibility.
Finally, retail property investment requires more than constructing buildings. Successful commercial centres depend on accessibility, tenant relationships, operating efficiency and the economic strength of their surrounding communities.
For investors, the McCormick and Exemplar relationship illustrates how development pipelines can support long-term property investment strategies.
Nevertheless, investment decisions should consider individual asset performance, financing arrangements, occupancy, rental collections and valuations rather than relying solely on development numbers.
Conclusion
McCormick Property Development’s 88 completed retail developments represent a substantial contribution to South Africa’s township, rural and peri-urban commercial property landscape.
Its focus on underserved communities, partnerships with established retailers and relationship with Exemplar REITail demonstrate an alternative approach to commercial property development.
As the company advances its construction programme and immediate pipeline, its projects will remain relevant to discussions about retail infrastructure, property investment and community economic development.
The broader commercial property lesson is clear: successful retail development depends on identifying genuine customer demand, creating accessible commercial infrastructure and maintaining sustainable relationships between property owners, retailers and communities.
