Mara spent RM375 million on four Melbourne properties, says NGO

Referring to documents from a Mara briefing about its investments in Melbourne presented in 2014, Rafizi, who is also PKR secretary-general, says the properties are also yielding rental returns below average market rates.

The most-expensive purchase was 746 Swanston Street, bought for RM138.6 million, followed by 333 Exhibition Street, for close to RM100 million and 51 Queens Street at RM70.4 million.

Mara directors, including chairman Tan Sri Annuar Musa, were briefed about the rental projects in May last year, which should have led the Mara Council to cancel the purchases, said Rafizi.

"The suggestion should have been rejected by Mara Council immediately. This shows there are elements of negligence, abuse of power, money laundering, or just downright stupidity."

Referring to property market reports from Australia, Rafizi said Mara's rental yield was between 5.5% to 6.2% for the properties, with the projection expected to increase between 6% to 6.7% in five years' time.

However rental yields for the Melbourne central business district were already averaging 7% when Mara was evaluating the purchases, and was climbing as high as 9% when they were finalised.

Rafizi said rental yields were likely on the low side for the Mara-owned properties because it had overpaid for the properties.

"Rental yield is calculated with rental returns and purchase price. Likely, Mara paid above market rates for these properties and hence the rental yield comes up lower," he said.

Last week, The Age had revealed that “a group of super-rich Malaysian officials” overpaid by A$4.75 million (RM13.8 million) for a Melbourne property in 2013.

The trio had allegedly “overbid” for Dudley International House, from A$17.8 million to A$22.5 million (RM65.3 million), with the difference pocketed as bribes back home.

It was reported that Australian developers of the property received sham invoices for fake services, such as “consultancy and advisory”, from Malaysian firms, the paper had said.

Following the report, Mara chairman Tan Sri Annuar Musa had said Mara began investigations into the multi-million ringgit purchase of the building by one of its subsidiaries two months ago, before the matter had been reported by The Age.