Singapore retailer Mustafa’s to open first Malaysia department store in Johor Bahru in 2023

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SINGAPORE – Local retailer Mustafa’s, which operates the Mustafa Center on Syed Alwi Road, will open its first Malaysian department store in a shopping mall in Johor Bahru, mall owner Capital World announced on Friday.

Singapore-listed Capital World has filed on the stock exchange to sell most of the retail space in the 11-story Capital City Mall in Tamphoy to Mustafa’s for RM368 million (S$113.7 million).

Mustafa’s will purchase 591 unsold retail units representing a total net leasable area of ​​641,216 square feet. It will also acquire 374 accessory lots in the mall, including outdoor and function areas spanning a total of 1.28 million square feet. parking space.

Mustak Ahmad, Managing Director of Mustafa, said:

He added that Capital City Mall meets many requirements for the first flagship store in Malaysia, including proximity to Singapore and ample floor space.

Both Mustafa Department Store and Capital City Mall are expected to open in the second half of 2023.

Capital City Mall was completed in April 2018 and opened in October of the same year. However, the mall has been closed since February 2020 as Capital World ran into financial trouble and had to seek court protection from its creditors while it restructured its debt.

The sale to Mustafa’s comes after Capital World restructured its debt of around RM187 million in April 2022.

The mall is also part of Tampoy’s broader freehold integrated development, so the proceeds from the sale will help Capital World complete the remaining components of the project. These will include a 315-room hotel, his 18-story tower with 630 serviced suites, and 690 serviced apartments.

The company also said it will pursue other real estate opportunities, such as helping Mustafa identify potential locations for developing megastores in Malaysia and Indonesia.

Trading in Capital World shares has been suspended on the Singapore Exchange since February 14, 2020. Proposals to resume trading must be submitted to exchanges by April 30.

Hoo Khee Leng, Chief Executive Officer of Capital World, said the deal with Mustafa will “accelerate Capital World’s performance recovery and restore value for shareholders as we work towards the lifting of the stock trading suspension.” I will let you,” he said.

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