News: FELDA Estimated to Lose Millions Over Sales of London Property

Oct 12, 2017

 
In view of the loan interest and operating losses, PKR’s Pandan MP Rafizi Ramli believes that the Federal Land Development Authority (FELDA) would not profit from the sale of its serviced apartment property in London.

In 2013, Felda’s unit, FIC UK Properties Sdn Bhd, acquired Grand Plaza Serviced Apartment for RM538 million.

According to Rafizi, Felda would still lose millions even if Grand Plaza is sold for over RM538 million. Notably, the property could be sold today for as much as RM680 million.

This comes as FIC UK Properties has lost millions since it acquired the property in 2013, showed records from the Companies Commission of Malaysia (CCM).

“We can predict that the operations continued to suffer losses of around RM12 million a year in 2016 and 2017. The accumulated operational losses since the purchase is estimated to reach RM45 million,” said Rafizi.

Moreover, Felda would still have to pay for the interest of the RM6 billion loan it took from the Employees Provident Fund (EPF).

“Thus, factoring the operational losses and interests, if the sale happens for RM680 million, Felda stands to lose about RM38 million.”

 

Image sourced from Malay Mail.

 

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my

 

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