Mustafa Centre begins fit-out at JB’s Capital City Mall after 2-year delay
Retailer has been looking to operate on five floors of the strata-titled mall but has faced challenges in reaching agreements with individual owners
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[SINGAPORE] Capital World has begun renovation and fit-out works for Mustafa Centre’s first outlet in Johor Bahru.
The project, located at Capital City Mall, is scheduled for completion before the first quarter of 2027, Capital World announced on Monday (Apr 13).
Singapore-based retailer Mustafa Centre will occupy about 240,000 square feet (sq ft) of the mall’s ground floor. This space serves as the primary anchor for the one million sq ft development.
Eric Tan, managing director of Capital World, noted that the start of fit-out works marks a “culmination of years of patient negotiation”.
Mustafa’s entry into the Malaysian market was originally planned for the second half of 2023, The Straits Times reported in February.
Mustafa was reportedly looking to operate on five floors of the 11-storey Capital City Mall, but had faced challenges in reaching agreements with individual owners. The assets Mustafa will acquire do not cover five floors.
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Capital City Mall is a strata-titled mall, which means retail units can be owned by individual owners, investors or businesses.
While the 2023 deal, worth RM368 million (S$118.8 million), secured 591 unsold units for the retailer, negotiations had reportedly been ongoing with third-party owners to acquire the remaining space it wanted. The release did not provide additional information on these negotiations.
The mall is located at Jalan Tampoi, an approximate 15-minute drive from the Johor Bahru CIQ complex.
It is positioned to capitalise on several regional infrastructure developments. The site sits within the Johor-Singapore Special Economic Zone, established in early 2025.
The development is also expected to benefit from increased visitor traffic once the Johor Bahru-Singapore Rapid Transit System commences operations at the end of 2026.
Shares of Capital World ended flat at S$0.001 on Monday.
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