It was reported that a particular plot of land was sold at £150 per square metre, a mark-up of around 5000% to investors in Asia.

Havering Green Belt for Sale in England

If the plot of land does not end up getting planning permission, you can bet that the resale value of the land will be much lower compared to what investors paid for them.

Just think about it. Despite all the “planning permission potential”, the original owner of the land has seen enough value to want to sell the land to the land banking company at around £3 per square metre. Why not keep the land for themselves, apply for planning permission and sell it at £1000 per square metre if they are successful?

In a District Court hearing yesterday, CAD reported that their investigation against land banking company Profitable Plots was still ongoing. Deputy Public Prosecutor (DPP) Christopher Ong added that CAD’s investigations would probably be concluded within six months. Investigations first started in August 2010.

229 complaints involving more than $20 million worth of investments have been made to CAD against Profitable Plots.

District Judge Roy Neighbour granted the Public Prosecutor and the CAD a further four months for them to freeze the accounts (with about S$55k) and complete investigations.

A few months ago, the High Court had allowed for more than $200k from the bank account of Profitable Plots to be released in order to pay the for salary of their staff.

CAD has sought overseas help in Profitable Plots investigation
(Today)

CAD’s Profitable Plots probe reaches advanced stage (ChannelNewsAsia)

It looks like investors with Profitable Group will have to wait longer for CAD’s investigations to be completed.

In a court hearing yesterday, Attorney-General’s Chambers (AGC) had asked for the company’s bank account to be frozen for another six months so that CAD could complete their investigations. The court gave the CAD three months instead. Not that it matters much anyway as there is only about $55k left in their bank account.

The latest update from CAD was that 174 complaints involving $18.5 million of investments had been received. Given that the company’s revenue was $35.4 million in 2009 and $32.8 million in 2008, we can guess that there are probably many more investors who have yet to file their complaint.

No charges have been filed against Profitable Plots as of now and the next hearing on the case is scheduled for 9th March 2011.

According to their lawyer, the company’s potential $212-million deal with Filipino parties has been jeopardised due to the alleged fraud investigations.

Profitable Group, a company that provides UK land investment opportunities, managed to get the High Court to release $218,000 from its frozen bank accounts to pay the outstanding wages of its staff.

After this payment, Profitable Plots will be left with only $60,000 in its coffers.

While Profitable Plots is currently under investigation by CAD, no criminal charges have been pressed against the company yet. The Attorney-General’s Chambers would have to update the court on the CAD’s investigations next Thursday.

Profitable Plots Staff to be Paid (Today)