South Africa’s Putprop sells 50% stake in Mamelodi Square for $9 million

South Africa’s listed property sector is undergoing a steady shift as companies reassess portfolios and look to unlock value from selected non-core assets.

JSE-listed Putprop is the latest to move in that direction, with a set of disposals spanning township retail and industrial real estate in Gauteng.

The company is selling assets at a time when many South African real estate groups are tightening balance sheets and focusing on income-generating properties with more stable returns.

The transactions also reflect continued investor interest in township retail centres, which have become an important part of the country’s expanding consumer economy. 

Putprop said the move is part of a broader effort to recycle capital, reduce debt, and position the business toward higher-yielding investments.

The company is also looking to redeploy proceeds into assets that offer stronger long-term rental performance. 

At the centre of the deal is the sale of its 50% stake in Mamelodi Square in Tshwane, as well as a separate land transaction in Dobsonville.

Together, the deals signal a more focused approach to portfolio management as the company adjusts to changing market conditions in South Africa’s commercial property sector.

Mamelodi Square stake sale 

Putprop has agreed to sell its 50% interest in Mamelodi Square, a township retail centre in Tshwane, for R148 million, or about $9 million, to its co-owner, Exemplar REITail.

The transaction marks a full exit from the asset for Putprop. 

The mall, which opened in October 2022, has a total rentable area of 16,955 square meters and a weighted average rental of R145.52 per square meter.

It serves a growing consumer base in the surrounding township economy, where retail demand has remained relatively resilient.

Dobsonville Industrial Property deal 

In a separate transaction, Putprop has also entered into a land sale agreement for an industrial property in Dobsonville valued at $1.23 million.

The site covers 3,500 square meters and is zoned for industrial use, with a weighted average rental of R84.80 per square meter. 

The company said both transactions are part of the same disposal strategy and involve the same buyer, which means they fall under category 1 transactions on the Johannesburg Stock Exchange and require shareholder approval before completion.

Exemplar REITail expands ownership 

Exemplar REITail, which already held a 50% stake in Mamelodi Square, is moving to full ownership with the latest acquisition.

The company first entered the asset in 2023 as part of a broader acquisition strategy focused on township retail properties sourced from McCormick Property Development. 

McCormick Property Development, a township-focused developer linked to the John McCormick Family Trust, has been a key supplier of assets in this segment.

With the transaction, Exemplar consolidated control of Mamelodi Square, further expanding its footprint in South Africa’s township retail property market.