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Mustafa’s, which operates Mustafa Centre in Little India, will open its first department store in Malaysia later this year.

The news was first reported by Singapore-listed mall owner Capital World in a bourse filing on Friday, Jan. 27, according to The Straits Times (ST).

Capital World said that it will sell much of its retail space in the 11-storey Capital City Mall in Johor Bahru to Mustafa's for approximately S$113.7 million.

To buy 591 unsold retail units

The new Mustafa's, as well as Capital City Mall, is expected to open across the border in the second half of 2023.

According to ST, Mustafa's will buy 591 unsold retail units from Capital World, which amounts to about 641,216 sq ft of space within the mall.

It will also acquire 374 accessory parcels, which includes al fresco and multi-purpose areas in the mall and all 2,181 carpark spaces.

According to CNA, Mustafa’s managing director Mustaq Ahmad said that the company felt that "the time is ripe" for them to expand into the Malaysian market.

Mustafa is best known as a one-stop retailer for a wide variety of goods and products at relatively affordable prices in Singapore, and for having 24/7 operating hours.

"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," Mustaq added.

Background on Capital City Mall

The mall was first completed in April 2018 and opened in October of the same year, but later shuttered as of February 2020 as its parent company Capital World ran into financial difficulties.

It is located in the Tampoi district of Johor Bahru, which is about a 15-minute drive from the JB checkpoint.

Capital World said the deal with Mustafa will give it "the financial muscle" to build and complete the remaining components of the mall.

This will also allow the company to pursue other real estate opportunities, including helping Mustafa potentially identify and develop other mega stores in Malaysia and Indonesia.

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