close
Friday June 21, 2024

NAB only provides certified copies of London properties

By Usman Manzoor
March 02, 2018

ISLAMABAD: National Accountability Bureau (NAB) in its investigation report, which made the basis of interim reference against Mian Nawaz Sharif in Flagship investment case, has admitted that it could not find any fresh evidence against Nawaz Sharif and his scions and in fact has succeeded in obtaining certified copies of the record available in the public domain in the UK.

The investigation report mentions details of ten companies that are in the name of Hassan Nawaz Sharif and the properties owned by those companies from time to time and all these companies have been mentioned in the WhatsApp-call-fame JIT report.

After blaming Hassan Nawaz in the entire report, NAB has sought punishment for Mian Nawaz Sharif. The fresh investigation report, a copy of which available with The News, states that no Mutual Legal Assistance letters sent by JIT has been so far replied but NAB has obtained certified copies of the record available in public domain in UK.

NAB report claims that the bureau has succeeded in obtaining details of ten companies owned by Hassan Nawaz and a list of eleven properties purchased between 2002 to 2007. Of the eleven properties, NAB has no details of three properties as for how much they were purchased by comapnies owned hy Hassan Nawaz. Though the investigation report mentions the purchase date of seven properties but NAB has been unable to dig out when were these properties sold or whether they are still in the possession of Sharifs.

One property of Hyde Park London has been mentioned in the report citing statement of Hassan Nawaz before the JIT, NAB has no documents of it as the report has not mentioned so. Of the seven properties whose details are available and the one property of Hyde Park, Hassan Nawaz has purchased properties worth GBP 18.49 million (Rs 2.8 billion in today’s value or approximately Rs2.1 billion if converted at the exchange rate on the date of purchase) and sold one property of Hyde Park for Rs 6.3 billion alone in 2016.

The report says, “The undersigned (Investigation Officer) applied for certified copies of the record regarding 10 known companies of Hassan Nawaz after payment of the prescribed fee in the office of Companies House, London, UK on 18.01.2018. The record of Companies House mainly includes financial statements, incorporation details and charge documents. The undersigned also applied for official copies of Land Registry documents on prescribed forms pertaining to the properties held in the name of above mentioned companies and reflected in the charge documents by paying the requisite fee through postal order on 19.01.2018.The application forms duly tilled-in were forwarded to the office of HM Land Registry through Royal Mail, UK.”

“The record collected from Companies House, UK includes certified copies of Financial Statements, incorporation details and charge documents of the 10 known companies owned/acquired by accused Hassan Nawaz Sharif. Following are the list of companies and its details which are re-affirmed from the record so collected:

Flagship Investments Limited: The company was established on 12-04-2001 with paid up capital of GBP 1, wherein the Hassan Nawaz became the Director on the same date. The financial statement of the company for the year 2002 reflects extension of a loan/working capital fund from the Hassan Nawaz (Director) amounting to GBP 705,071.

Hartstone Properties Limited: The instant company was incorporated on 22-03-2002, wherein the Hassan Nawaz became its Director on 26-03-2002. The paid up capital was GBP 2 only. He held 50% shareholding in this company. Hassan Nawaz obtained building society loan amounting to GBP 1.2 million for Flagship investment by mortgaging the property of this company.

Que Holdings Limited: The instant company was incorporated on 15-07-2003, wherein the Hassan Nawaz became its Director & Company Secretary on the same date. The paid up capital was GBP 1 only.

Quint Limited: The instant company was incorporated on 15-07-2003, wherein the Hassan Nawaz became its Director & Company Secretary on the same date. The paid up capital was GBP 1 only.

Quint Eaton Place 2 Limited (former Quint Etam Place Limited): The instant company was incorporated on 13-11-2003, wherein Hassan Nawaz became its Director & Company Secretary on 23-11-2003. The paid up capital was GBP 100.

Quint Gloucester Place Limited: The instant company was incorporated 22.08.2006. The paid up capital was GBP 1 only.

Quint Sloane Limited (former Quint Eaton Place Limited): The instant company was incorporated on 19-11-2003, wherein Hassan Nawaz became its Director & Company Secretary on the same date. The paid up capital was GBP 100.

Quint Paddington Limited (Formerly Rivate Estates Limited): The instant company was incorporated on 12.03.2007. The paid up capital wag GBP 100 only. Flagship Securities Limited: The instant company was incorporated on 25-07-2005, wherein Hassan Nawaz became its Director on the same date. The paid up capital was GBP 100 only.

Flagship Developments Limited: The instant company was incorporated on 15-09-2010, wherein Hassan Nawaz became its Director on the same date. The paid up capital was GBP.1 only.”

The record from HM Land Registry has been collected regarding the ownership of properties having clear title which are held in the name of above mentioned companies and reflected in the charge documents. Company wise detail of the properties are as under:

Flagship Investment Limited: Units 31-33 Wills Way Industrial Estate Plots, Fleets-bridge Poole Dorset at the Land Registry with title numbers DT99349, DT148418, DT152196, DT253611, DT278957, DT168371 and DT115513. The property is reflected in charge document of Flagship Investment Limited. The property was mortgaged/created charge with West Brombitch Society on 26.04.2002. As per land registry record the title of land is in the name of Hartstone Properties Limited (Hassan Nawaz being shareholder of 50%) from 15.07.2002 and acquired for a consideration of GBP 2,900,000. This property was used as collateral to obtain loan for Flagship Investment Limited.

Flat No: 8, 121 to 125 Edgeware Road and Parking space 8, London (w2 2HX) NGL806047. The property is mentioned in the charge document of Flagship Investment Limited. The property was twice mortgaged/ created charge with National Bank of Dubai/ National West Minister Bank and Bank of Scotland on 18.12.2001 and 21.05.2004, respectively. The land registry document shows the ownership title in the name of Flagship Investment Limited acquired on 22-01-2002 for GBP 465,000 (Rs 252.3 million approx in 2002).

Flat No: 12A Avenfield House Park Lane, London (W1K 7AF), title number NGL335917, is reflected in the charge document of Flagship Investment Limited as well as in the Land Registry document. The property was mortgaged twice with Bank of Scotland and Santanderg (UK) PLC on 21.05.2004 and 30.04.2012, respectively. As per land registry document, the property was acquired in the name of Flagship Investment Limited on 29.01.2004 for an amount of GBP 365,000 (Rs 40 million).

Flat 201, 14, St George Wharf London (SW8 2LR) TGL192078, is also reflected in the charge document of Flagship Investment Limited wherein the property was mortgaged in favor of Bank of Scotland on 21.05.2004. The land registry document shows ownership title of the property in the name of Flagship Investment Limited and acquired on 07.08.2002 for sate consideration of GBP 385,000 (Rs 37.5 million approx in 2004).

Flat No: 10, Duke Mansions, Duke Street London NGL394460. The charge document reflects creation of charge on the said property by Bank of Scotland on 29.10.2004 for Flagship Investment Limited.

Flat No: 2, Dunraven House, 36, Green Street, London (W1K7FH) tit1e number NGL832138: The charge was created on the said property by Bank of Scotland on 28.01.2006 and 30.04.2012 (collective with 12A Avenfield) for Flagship Investment Limited. As per land registry record, the property title was transferred to Flagship Investment Limited on 16.02.2005 for a consideration of GBP 499,999 (Rs 56.5 million)..

Flat No. 4, 69 Cadogan Square, London (SW1X ODY) title number NGL569247z, was mortgaged/created charge by Bank of Scotland on 04.04.2005. The land registry record shows title of ownership in the name of Flagship Investment Limited on 28.04.2005 acquired for GBP 675,000 (Rs 74.25 million).

Upper Ground Floor office premises, Stanhope House, Stanhope Place, London (W2 2HH) title number NGL 874297. The charged document shows agreement between the company and Delmar Developments SA. The land registry document shows title of property in the name of Flagship Investment Limited on 05.01.2007.

Quint Paddington Limited: F/H & KIA the Father & Firkin Public House, 15 Chilworth Street, London (W23 QU) title numbers NGL818885 & NGL350124. The charge was created on the properties by Alb Group (UK) PLC on 01.05.2007. The land registry documents reflect title of ownership in the name of Quint Paddington Limited acquired on 05.06.2007 for GBP 2,650,000 (Rs 318 million).

Quint Limited: Flats L&M, 70 Eaton Square, London SW1: A loan facility was processed by the company to continue assistance with purchase and costs of the said property with Investec Private Bank.

Quint Gloucester Place Limited: F/H117, Gloucester Place, London W1U 6JU at the Land Registry with title number NGL417483. The property is reflected in the charge document. Charge was created twice on the said property by Alb Group (UK) PLC and Barclays bank on 21.02.2007 and 23.07.2009 respectively.

Quint Eaton Place 2 Limited: Flats no. 5, 97-99 Eaton Place, London SW1. The said property was mortgaged with Bank of Scotland on 27.09.2004 as reflected in the charge document of the company.

Hyde Park London: In addition to the above listed properties Hassan Nawaz in his statement on 08-06-2017 before the JIT, admitted and confirmed the ownership and subsequent sale of a prime property situated at 1 Hyde Park London (a three story building with a covered area of 10,000 square feet). He claimed to have purchased the said property for GBP 10.50 Million in August 2007 and sold the same for GBP 42 Million in 2016 after major uplift at an approximate cost of GBP 8 Million. However he failed to account for the source of funds for the acquisition of this asset.”

Regarding Flagship Investment Limited and other companies set up/taken over by Hassan Nawaz Sharif, the Sharifs have responded that Flagship was started with modest capital. The business model of Flagship is that they buy a rundown property, develop it to a very high standard (takes average 2.5 years per property sometimes even more) and then sell it. It’s easy to find buyers in London given the high demand. Hence they get paid for value addition, appreciation in the price of the property in the time the work goes on. Normally if the estimated cost of the project including its redevelopment is say 2 million pounds, 0.5 million pounds is paid as equity whereas 1.5 million is bank loan. It is very easy to sell such property for 2.5 million (even more) after 2.5 years. Since one’s equity was 0.5 million, one can easily double it. Flagship has done dozens of projects like this and sold them. There is no working capital required in such business. The money that was used in Flagship came from these sources: a) From the Qatari prince; b) from the sale proceeds of Al Azizia Steel money was given to Hassan Sharif by his elder brother Hussain Sharif. c) In 2007 after the Park Lane apartments were transferred to Hussain Sharif, he let his brother Hassan mortgage those properties and borrow against them from Deutsche Bank. That money was used in the business giving it the real boost. The loan was paid off in installments and completed in 2015.