Singaporean retailer Mustafa will soon open its first departmental store in Malaysia. The development comes after it sealed a deal acquiring a large part of Capital City Mall in Johor Bahru.
Mustafa, which opened its first shop in 1971, has been operating the Mustafa Centre along Syed Alwi Road in Singapore’s Little India since 1995.
More about Mustafa’s entry into Malaysia
Mustafa to acquire much of Capital City Mall’s space
Capital World, the parent company of Capital City Mall, announced on January 27 that it is selling much of the 11-storey mall to Mustafa for RM 368 million (INR 708.4 Crores).
In its statement released on Singapore Exchange, Capital World said that Mustafa will acquire 591 unsold units of the Capital City Mall. The combined net lettable area (NLA) of the units comes to 59,570 square metres.
Mustafa will also gain access to all 2,181 car park lots beside 374 accessory parcels, comprising alfresco and multi-purpose areas with an NLA of around 118,915 square metres. As per the terms of sale, Capital World will also build a four-storey cold storage facility within the mall for Mustafa.
What to know about Capital City Mall
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Opened in 2018, the Capital City Mall is located in the Tampoi suburb near Johor Bahru checkpoint. It is part of a freehold integrated development which will also include a 315-room hotel, an 18-storey tower with 630 serviced suites, and 690 serviced apartments spread across three blocks.
Capital City Mall had been shut since February 2020 due to “financial difficulties” faced by the company and one of its key subsidiaries. In its statement, the company said that it “had to seek court protection from creditors while they restructured their debts.”
The mall, and the department store, are expected to start operating in the second half of 2023.
What Mustafa and Capital World said
Mustafa’s managing director Mustaq Ahmad said that the “time is ripe” for his brand to enter Malaysia.
“One of our key challenges until now has been finding an appropriate site. Capital City Mall meets many of the requirements for our first flagship store in Malaysia, given its close proximity to Singapore, ample floor area and ideal floor plates,” he said.
Capital World’s CEO Hoo Khee Leng said, “Having Mustafa as a key player in our integrated development is a major catalyst for Capital World as they have what it takes to run a thriving retail business given that they are a household name in Singapore.”
(Main image: User:Sengkang – Own work/Copyrighted free use/Wikimedia Commons; Featured image: Joshua Tsu/@joshdatsu/Unsplash)
This story first appeared on Lifestyle Asia Kuala Lumpur
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