Malaysia’s Federal Land Development Agency, Felda, is selling the Grand Plaza Hotel in Kensington, W2, for £110m.
The 105,336 sq ft property comprises 13 interconnected Victorian buildings on Prince’s Square, Bayswater, and includes 198 serviced apartments. It also includes a courtyard, restaurant, office and meeting space.
It is being offered freehold and is available with vacant possession.
Felda, which operates some of the world’s largest palm oil plantations, bought the hotel three years ago for £98m through its investment arm Felda Investment Corporation.
In January this year the state-owned group was mandated to sell shares in its investment portfolio to raise money for its small landowners.
According to reports, FIC is currently under investigation by The Malaysian Anti-Corruption Commission for paying above-market value for properties, including the 62-bedroom Park City Grand Plaza in Kensington, W8, which it bought in 2014 for £60m, causing the Felda subsidiary to suffer millions of ringitt in losses.
The group was originally founded to handle the resettlement of rural poor in Malaysia into improved conditions and newly developed areas, as well as supporting small farms.
Its investment arm was set up in 2013, with a focus on the real estate, hospitality and oil and gas sectors.
It also owns the Grand Borneo Hotel, Sabah, and Merdeka Palace Hotel & Suites in Kuching, Sarawak.
CBRE and Knight Frank are advising FIC.
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