A LAWMAKER today asked the Federal Land Development Authority (Felda) to reveal who were the real owners of a London property that has been surrounded by controversy.

PKR vice-president Rafizi Ramli said his research into the Grand Plaza Kensington in London turned up surprising results.

According to Felda’s latest financial statements, the hotel is managed by Grand Plaza Kensington Ltd but owned by FIC London Hotel (Pte) Ltd.

Both companies are based in the UK and are owned by Felda subsidiary Felda Investment Corporation Sdn Bhd.

Rafizi said his attempts to search for a record of FIC London Hotel (Pte) Ltd in the Companies House, the UK directory of companies, drew a blank. 

“The company that is named in Felda’s financial records –  records which are audited and certified to be true – and which Felda says holds its prized RM330 million hotel in London –  this company does not exist.”

Yet the financial statements of Grand Plaza Kensington Ltd said that it paid rent to FIC London Hotel (Pte) Ltd, he said.

“A big chunk of the “administrative expenses” (of Grand Plaza Kensington Ltd) which cause the company to post losses, is the rent payments to the FIC London Hotel (Pte) Ltd, the owner of the property.”

Checks on the land title of the hotel showed that the registered owner was FIC London Hotel (Pte) Ltd (incorporated in the British Virgin Islands), he said.

“(This shows that) The hotel is not owned by a Felda subsidiary that was set up in the UK as stated in Felda’s audited 2014-2015 financial statements. That company does not exist.

“No one can verify the true owner of FIC London Hotel (Pte) Ltd which was registered in the British Virgin Islands,” he said.

He said it was important to identify the true owner of the London property as it was paid large sums in rent and other payments that have caused the hotel to report a loss every year.

Yesterday, Felda said it had received 54 offers to buy the hotel, which Felda bought in 2014 for RM330 million.

According to Felda’s documents, Park City Grand Plaza Kensington is a four-star hotel with 62 rooms and two units of serviced apartments. It was FIC’s first overseas property investment.

Felda chairman Shahrir Samad had said he was positive that the sale would benefit the statutory body which manages 110,000 settler families in the country.

He added that Felda was weighing all the offers and would pick the best and most reasonable one.

Shahrir had earlier refuted Rafizi, who claimed that the sale would lead to a RM38 million loss.

Today, Shahrir said the purchase of the Kensington property was being investigated by the Malaysian Anti-Corruption Commission.

“All matters concerning the property is within the scope of the investigation, and because of that, I will refrain from responding to any public queries on the matter.

“I have pledged my and Felda’s fullest cooperation to assist in MACC’s investigation into the Kuching and Kensington properties,” he said in a brief text to The Malaysian Insight.

In July, MACC announced that it had started a probe into Felda’s purchase of the London hotel and another four-star hotel in the heart of Kuching.

The probe is over allegations that Felda had overpaid for the two properties. – October 15, 2017.