ISLAMABAD: Despite special incentives, the investors did not show any interest in the auction of two plotsof two five star hotels in sector F-5.

“Three investors did turn up, but none of them submitted bid even equivalent to reserved prices,” said an officer involved in the auction.

The Capital Development Authority (CDA) held the auction on Tuesday and the investors could deposit their bids till 12pm. However, none of them showed their interest.

The official said that three bidders – Mind Bridge, Nishat Hotel and Properties and Hashoo Group got token from CDA to participate in the bidding process. The Hashoo Group offered bid of Rs250,000 per square yard for a plot located adjacent to Marriot hotel. However, the official said that this bid was far below the reserved prices of Rs827,000.

Two other investors did not submit their bids. Therefore, the official said that CDA decided not to accept the bid offered by the Hashoo Group.

Meanwhile, for another plot, the CDA had fixed Rs7,30000 per square yard, however, none of the investors showed any interest in this bid.

The official said that the reserved price was not high as a couple of years ago, the CDA had auctioned hotel plot in G-9 portion of Blue Area against around Rs800,000 per sq yard.

CDA had offered special incentives to businessmen including two year payment plan, besides giving possession of the plots upon 75 per cent payment, and an extra 10pc discount will be offered for upfront payment.

Recently, the CDA chairman also held a meeting with businessmen and highlighted the critical need for international-standard five-star hotels in Islamabad to cater to the growing demand for hospitality services.

However, investors did not show any serious interest in auction and sources said that the CDA may now go for joint venture.

“In coming days, we will decide whether we should hold another auction after few months, or we should go for joint venture. The CDA will take a decision after getting input from the federal government,” said an officer of the CDA.

Though CDA could not get desired results in auction of hotel plots, but it is optimistic about success of next month selling of residential plots in sector C-14.

The CDA is going to sell 236 residential plots, measuring one kanal (500 square yard) against Rs60 million each.

The civic agency will allot plots after holding e-balloting to be held on Jan 14. “We are hopeful that all plots will be sold out, as till today over 400 applications have been received,” said a director of CDA.

He said that till Dec 30, people can apply for these plots and successful applicants could submit payment of plots in 10 months timeframe.

The official said that preference would be given to overseas Pakistanis, who will deposit payment in dollars.

Published in Dawn, December 19th, 2024