Felda to proceed with RM534 mil project in London

Felda Chairman Isa Abdul Samad says London remains an attractive investment destination despite Brexit.

PETALING JAYA: The Federal Land Development Authority (Felda) will proceed with its GBP100 million (RM534 million) “Wembley Three” project in London, reported the New Straits Times today.

The report quoted Felda Chairman Isa Abdul Samad as saying the group’s investment arm, Felda Investment Corporation Sdn Bhd (FIC), would go ahead with the project following the successful launch of the previous two phases which cost GBP167 million (RM895 million).

“Felda is discussing with London-based developer Eide Construction to continue with the development package, which is located 500m from the Wembley stadium,” Isa was quoted as saying.

According to him, London has proven to be an attractive investment destination and a profitable property venture despite various issues, including Brexit.

While the first two projects, namely Wembley One and Wembley Two were developed for student accommodation, Wembley Three had been earmarked for a hotel, apartments and offices, said the report.

Felda, founded in 1956 to handle the resettlement of the rural poor into newly developed areas, owns 12 hotels and resorts in London.

According to Isa, the group’s hospitality assets had recorded a “healthy occupancy rate” of 80 to 90 per cent, and contributed between RM1 million and RM2 million to the group, monthly.

Isa also spoke to the daily about the housing project for settlers’ children, set to be completed next year.

He dismissed claims by certain parties that the failure to complete the first phase of the project was due to Felda running out of money. He clarified that the delay was due to issues with obtaining loans from financial institutions.

The housing projects, in more than 300 settlements nationwide, will offer homes with a built-up area of 1,000 sq ft for RM90,000 a unit. There is also a second phase in the works, comprising 850 sq ft units priced at RM70,000 each.

Isa said that the Opposition had not succeeded in convincing Felda settlers to fall for their propaganda.

“So far, they have not managed to convince the settlers and I am confident that the Felda community’s support for Umno and Barisan Nasional (BN) will still be strong in the coming general election.”

Isa also downplayed the impact of some senior Umno leaders leaving the party and working with the Opposition to bring down the BN.

He expressed confidence that with the right information programme to the grassroots, Felda would remain a fixed deposit for the BN in the coming general election.