WHY is oil palm firm FELDA buying property in LONDON?

LONDON - Federal Land Development Authority (Felda) has acquired the 198-unit Grand Plaza Serviced Apartments for STG98 million (RM499.8 million) here.

The purchase of Grand Plaza in Bayswater comes barely a month after Felda surprised the market with a RM110 million deal to gain control of Bursa Malaysia-listed Iris Corp Bhd.

August was a busy month for Felda as it also took over ownership of Grand Borneo Hotel in Kota Kinabalu, bringing the number of properties under its banner to eight.

As for the London asset, it comes with an impressive credential of having an almost 100 per cent occupancy rate.

Felda chairman Tan Sri Mohd Isa Abdul Samad said the takeover was a milestone for the land authority.

Over the past five years, Felda had undergone a transformation from solely cultivating oil palm and rubber trees to getting involved in commercial and industrial activities.

"Buying properties in London is always a good move that will ensure good returns," said Mohd Isa during the opening of Grand Plaza Serviced Apartments yesterday.

Grand Plaza was acquired on September 4 and the existing management will continue running it.

Present during the opening were Malaysian High Commissioner to the United Kingdom Datuk Seri Zakaria Sulong and his wife, Datin Seri Hazizah Ahmad, and Felda's board of directors.

BT