KUALA LUMPUR, Oct 10 — The Federal Land Development Authority (Felda) could lose millions from the sale of the Grand Plaza Serviced Apartment it owns in London, PKR's Pandan MP Rafizi Ramli claimed today.
Rafizi claimed that loan interest and operating losses could mean that the sale may not be profitable even if the price exceeds the RM538 million that a Felda unit paid for the building in 2013.
FIC UK Properties Sdn Bhd bought Grand Plaza SA in 2013, and Rafizi said records with the Companies Commission of Malaysia (CCM) showed the firm has lost millions annually since then,
“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,” he said.
He said that while the building could go for as much as RM680 million currently, he claimed this must be adjudged against the entirety of the interest from a RM6 billion loan Felda 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,” he added.