PKR Vice President Rafizi Ramli has cast doubt on the ownership of Grand Plaza Kensington hotel by Federal Land Development Authority (FELDA).
Based on company’s latest financial statements, the London hotel is owned by FIC London Hotel (Pte) Ltd and run by Grand Plaza Kensington Ltd. Both UK-based firms are owned by FELDA’s unit Felda Investment Corporation Sdn Bhd (FIC).
However, Rafizi revealed that FIC London Hotel (Pte) Ltd has no record in the UK’s corporate database or Companies House.
“The company that is named in FELDA’s financial records and which FELDA’s says holds its prized RM330 million hotel — This company does not exist.”
Yet FELDA’s financial records, which are audited and certified to be true, states that that hotel operator paid rent to FIC London Hotel (Pte) Ltd.
“A big chunk of the ‘administrative expenses’ [of Grand Plaza Kensington Ltd] which caused the company to post losses, is the rent payments to the FIC London Hotel (Pte) Ltd.”
However, the hotel’s land title shows that its registered owner is a different FIC London Hotel (Pte) Ltd, a firm incorporated in the British Virgin Islands.
“[This shows that] the hotel is not owned by a FELDA subsidiary set up in the UK as stated in its audited 2014-2015 financial statements. That company does not exist.”
Rafizi underscored the importance of knowing Grand Plaza Kensington’s true owner as it was paid huge amounts of money even though the business was suffering a yearly loss.
Meanwhile, FELDA announced on Friday (15 October) that it received 54 offers to purchase the four-star hotel it acquired for RM330 million three years ago. Touted as FIC’s first foreign property investment, the property features 62 rooms and two serviced apartments.
Earlier, FELDA Chairman Shahrir Samad refuted Rafizi’s allegation that the proposed sale would result in a RM38 million loss. Instead, he believes it would be advantageous to FELDA.
Image sourced from Malaysia Chronicle.
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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