Real estate developers SKS Group and MB World Group Bhd acquired the hotel block and four residential blocks situated above Capital City Mall in Tampoi, Johor Bahru, for approximately RM50 million in a deal announced on November 7, 2026.
Developers Acquire Towers for RM50 Million
The acquisition carries a combined preliminary estimated gross development value of RM680 million, according to a press statement released by the companies. The valuation divides into RM180 million for the hotel component and RM500 million for the serviced apartments.
The transaction covers solely the hotel and residential components. The retail podium at the base of the development remains under the ownership of its current owner.
Companies Detail Construction Plans
Upon completion, the site is expected to feature a 16-storey, four-star internationally branded hotel containing 315 keys. Alongside the hotel, the project incorporates four 15- to 18-storey serviced apartment blocks, offering a total of 1,320 units with built-up areas spanning from 392 square feet to 1,178 square feet.
While the two development companies share common directors, no joint-venture company will be established. SKS Group and MB World Group will handle their respective components separately.
MB World Group will manage the development, marketing, construction, and delivery of vacant possession for the residential units. Selling prices will be disclosed after the company secures the project advertising permit and developer’s licence. SKS Group will oversee the hotel block, retain ownership of the hotel property, and appoint an international hotel brand to run operations.
Site History Traces Past Liabilities
Creditors were forced to contend with Capital World—the Singapore-listed builder behind the RM1.8 billion Capital City venture—when it shut down the shopping center in February 2020 and applied for legal protection, while liabilities that year were roughly pegged at RM400 million. Mustafa then bought 591 unsold retail units for RM368 million. A 2023 report listed the remaining assets as a 315-room hotel, a tower with 630 serviced suites, and three blocks containing 690 serviced apartments, equaling the exact 315 keys and 1,320 total residences integrated into the purchasers’ current scheme.
We are pleased to be part of this mixed-use development, which reflects our commitment to serving the community, supporting local economic growth and contributing to the continued development of the surrounding area,
Cindi Sim, SKS Group managing director and MB World Group executive director
Firms Partner on Sabah Project
In addition to the Johor Bahru property, both firms are partnering to revive a stalled mixed-use property situated in Kota Kinabalu, Sabah. That separate project includes serviced suites, retail units, and a hotel to be operated under a five-star international brand.
Subject to the necessary preparations and approvals progressing smoothly, development planning is expected to commence in the near term, with construction works targeted to commence in the first quarter of 2027 at the earliest, and completion anticipated by the end of 2028,
Cindi Sim, SKS Group managing director and MB World Group executive director