Despite a stagnant United Kingdom property market, state-linked Malaysian companies are snapping up London properties at relatively higher prices, raising concerns that a meltdown could waste millions in public funds. “The UK property market is stagnant in most places but in London. But what Malaysian companies are paying is insane and could go very wrong,” noted a Malaysia-based realtor who declined to be named. To illustrate, several realtors point to Feldas acquisition of the 198-unit Grand Plaza service apartments in Bayswater, London for £97.9 million (RM495 million). This is way higher than the value pegged by real estate agents Knight Frank and Savills for the property at just £80 million (RM408 million). Previous reports, showed that the Malaysian Anti-Corruption Commission (MACC) investigated the deal and was reported to the Public Accounts Committee (PAC). According to The Malaysian Insider, other Malaysian government-linked companies (GLCs) and agencies such as the Tabung Haji (Pilgrims Management Fund) and Employees Provident Fund (EPF) had also acquired commercial properties in London. In fact, some agencies are even by-passing the real estate agents and went straight to the sellers, paying higher than what is actually on offer, revealed one real estate agent who specialise in London properties. “The real estate agents lose the commissions but more importantly, the prices are not justifiable. Who ends up losing in the end? Malaysians,” she said. Notably, since July 2013, Tabung Haji, under new chairman Datuk Abdul Azeez Abdul Rahim, have been on the lookout for more London properties following the £205 million (RM1.04 billion) acquisition of its second major asset, the 151 Buckingham Palace Road, in February. Before the 151 Buckingham Palace Road purchase, Tabung Haji bought in September 2012 SJ Berwin’s distinctive city offices at 10 Queen Street Place for £165 million (RM841 million).
Posted on: Thu, 24 Oct 2013 02:34:25 +0000
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