FGV-appointed surveyor defends valuation report on luxury condos

KUALA LUMPUR (Oct 2): The surveyor appointed by FGV Holdings Bhd has today defended his valuation of the two luxury condominiums, saying that the valuation report was produced in compliance to the standard issued by the Malaysian Board of Valuers, Appraisers, Estate Agents and Property Managers.

The two condominium units at the Troika, KLCC are the main subject matter of FGV's civil suit against its former chairman Tan Sri Mohd Isa Abdul Samad and the company's former president and group chief executive Datuk Mohd Emir Mavani Abdullah.

FGV claims that the condominium units were bought at an inflated price. 

Foo Gee Jen (pictured), group managing director of CBRE | WTW, today addressed all of the issues in his valuation report during reexamination by FGV's lawyer Andrew Chiew Ean Vooi.

For instance, it was put to him by the defendant’s lawyers yesterday that Foo did not consider prices of nearby properties. However, Foo clarified that he had actually made such comparisons but it was not mentioned in the valuation report because he found comparables of the units within The Troika.

The witness also refuted that the findings in his valuation report were inconclusive and that it was prepared by FGV only for him to sign off.

Yesterday, Mohd Isa's lawyer Mavinthra Jothy Thillainathan challenged Foo's credibility as the surveyor appointed by FGV to value the condominium units.

Thillainathan argued that Foo did not provide substantial basis to the court as to how he arrived at the tabulations and figures in his valuation.

Foo, a chartered surveyor, was appointed by FGV in 2018 to assess the market value and market rental of the Troika units for the purpose of litigation. 

Following his assessment, a valuation report was produced and it was tendered as evidence in court.  

In his testimony, Foo said the market values of the Troika units were ascertained based on the Comparison Approach. 

According to Foo, the Comparison Approach entails analysing recent transactions and asking prices of similar properties in and around the locality for comparison purposes with adjustments made for differences in location, time, size, level, tenure, title restrictions, if any, and other relevant characteristics to arrive at the market value.

In his report, Foo valued the first unit at RM3.3 million as at September 2014, but it was bought by FGV at RM5.13 million during the same time. Meanwhile, the second unit was valued at RM2.2 million, but was bought at RM3.28 million at that time. 

He added that the information for all the comparables to arrive at his valuation were obtained from the Valuation and Property Services Department as well as his company's own database.

FGV, in its suit filed in November 2018, is seeking damages from Mohd Isa and Mohd Emir, including RM4.54 million for the total acquisition, use and possession of The Troika units, and another RM3.14 million in relation to the pool of cars and petrol benefits allegedly enjoyed by Mohd Emir.

The trial before judicial commissioner Quay Chew Soon continues on Monday.

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