KUALA LUMPUR (Nov 7): Real estate developers SKS Group and MB World Group Bhd have acquired the hotel block and four residential blocks situated above Capital City Mall in Tampoi, Johor Bahru, for approximately RM50 million, according to a press statement and supplementary comments on Friday.

The acquired components have a combined preliminary estimated gross development value (GDV) of RM680 million, comprising RM180 million for the hotel and RM500 million for the serviced apartments.

The acquisition covers only the hotel and residential components, while the existing retail podium remains under the ownership of its current owner.

Upon completion, the site is expected to feature a 16-storey, four-star internationally branded hotel with 315 keys, alongside four 15- to 18-storey serviced apartment blocks comprising 1,320 units with indicative built-up areas ranging from 392 sq ft to 1,178 sq ft.

While the two companies share common directors, no joint-venture company will be formed for the project, as the hotel and residential components will be undertaken separately under SKS Group and MB World Group.

MB World Group will be responsible for the development, marketing, construction, and delivery of vacant possession of the residential units, with selling prices to be announced following the obtainment of the project’s advertising permit and developer’s licence (APDL).

SKS Group will oversee the development of the hotel block, retain ownership of the hotel property, and appoint an international hotel brand to operate it.

"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," SKS Group managing director and MB World Group executive director Cindi Sim said.

"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," Sim added.

In addition to the Johor Bahru project, the two groups will also collaborate on the rehabilitation of an abandoned mixed-use development in Kota Kinabalu, Sabah, comprising serviced suites, retail units, and a hotel to be operated under a five-star international brand.