PETALING JAYA: Renowned Singaporean retailer Mustafa is set to open its first flagship store in Malaysia after purchasing 591 retail units in Johor Bahru’s Capital City Mall.
According to Channel NewsAsia (CNA), the mall’s parent company Capital World said Mustafa will pay RM368 million for 374 accessory parcels and all 2,181 of the mall’s parking lots.
The retailer is famous for its 24-hour Mustafa Centre in Singapore.
Its managing director, Mustaq Ahmad, said it was the right time for Mustafa to enter the Malaysian market, adding that one of the bigger challenges initially was finding a good location.
“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 said the 11-storey mall in Tampoi had closed in February 2020 due to financial constraints but is set to reopen in the second half of this year. It was completed in April 2018 and opened in October the same year.
The mall is part of a freehold integrated development, which also comprises a 315-room hotel, 18-storey tower with 630 serviced suites as well as 690 serviced apartments spanning three blocks.
Capital World said the sale will give the company the finances to finish the remaining parts of the integrated development.
This will then allow the firm to explore other real estate opportunities, it said, including identifying other potential sites for Mustafa in Malaysia and Indonesia.