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Islamabad: CDA gets Rs1.814 billion bids against auction of plots - Lahore_Real_Estate - 05-27-2010 11:35 AM
Mobarik A. Virk
The Capital Development Authority (CDA) at the end of the two-day open auction on Tuesday afternoon of the residential and commercial plots as well as orchard farms, received bids worth a total of Rs1.814 billion.
On the opening day, the authority disposed of 21 residential plots of different sizes in various sectors of the federal capital, which fetch a total bids of Rs244.23 million and today (Tuesday) the CDA received bids worth Rs1.570 billion against 16 commercial plots and orchard plots that were put up for auction.
Some confusion was caused during the auction of an 888.88 sq yard plot located in Markaz F-8 and the authority decided to hold it back to prevent any misunderstandings. The CDA also held back two commercial plots located in Sector I-16 on the basis that the bids might not reflect the actual value of the CDA’s assets because the sector is yet to be developed and the bidders would be required to make a long time investment.
In today’s auction of the commercial plots, the highest bid was received for an 888.88 sq yard plot located in Markaz of Sector F-11, which went as high as Rs353,000 per sq yard. The same plot was up for sale during the last auction but the CDA held it back because the bid received during the last auction for this plot touched Rs223,000 per sq yard. The decision of the CDA Board proved to be correct because the same plot fetched the highest bid in today’s auction.
CDA Chairman Imtiaz Inayat Elahi said that the auction is over now but the CDA Board will review all these bids, both for the residential as well as commercial plots, and if any bid was found not compatible with the market prices, the authority may retain the plot.
“We have to be careful while selling our assets. It is not necessary to allow the sale at the bid prices. We will see if the bids are compatible with the market rates and if satisfactory only then the sale would be approved,” Chairman Imtiaz Inayat Elahi said.
Meanwhile, the spokesman for the CDA said that the two-day auction of residential and commercial received a ‘resounding response’. “On the second day, CDA successfully conducted auction of 16 commercial, industrial and orchard plots out of total 20 offered for bidding. In different Marakiz of the city, nine plots were offered for open bidding out of which six plots were auctioned at encouraging rates despite the depressing real estate markets in the country,” the spokesman said.
Plot number 8 measuring 888.88 square yards in F-11 Markaz fetched a bid of Rs.353000 per sq yards which amounts around Rs345.15 million, whereas two plots were offered in Sector D-12 which is in the final phase of development and the possession letter for the residential plot has been handed over by the prime minister early this year.
In the Class-III Shopping Centres, Plot number 1-M located in Sector F-11/1 measuring 177.78 square yard received the highest bid of Rs 1,24,000 per square yard calculated around Rs22 million. In this category, Plot number 4 having a size of 444.44 square yard located in Sector G-11/1 got the lowest bid of Rs88,000 per square yard (Rs39.11 million). The Plot number 90 at I&T Centre in Sector G-10 got a bid of Rs34.13 million at the rate of Rs64,000 per square yard. In the whole sale market category, Plot number 2, Sector I-11/3 meant for sanitary ware on an area of 577.77 square yard received a bid of Rs34 million at the rate of Rs59,000 per square yard. Another plot of this category meant for cloth market located in Sector I-11/3 got the successful bid of Rs63,000 per square yard, which amounts to Rs36.40 million for a plot size of 355.55 square yard.
The plot number 33-A in Sector I-11/4 for fruit and vegetable market having a size of 33.33 square yard received a bid of Rs6.16 million at a rate of Rs185,000 per square yard. In the industrial category, plot number .447 (size 933 square yard), Sector I-9 got a bid of Rs24.25 million at the rate of Rs26,000 per square yard. Whereas plot number 448 in the same sector measuring 2400 square yard received a bid of Rs13,000 per square yard (Rs.31.2 million).
In orchard scheme category, plot number 48 on Murree Road measuring 4.76 acres received a bid of Rs12,50,000 per kanal which amounts to Rs47.60 million.
This auction was supervised by a committee headed by Saeed-ur-Rehman Member Finance, while S.M Farooqi Member Estate, Abdul Jabbar Melano, Member Planning & Design, Director Public Relations, Director Estate Management-I, Director Estate Management-II, Director One Window Operation, and Deputy Financial Advisor-II are the members of the committee. A large number of people participated in the auction and purchased plots in different categories in open auction.
The recommendation of auction committee would be submitted to CDA Board, which is the final authority for approving or disapproving any of the bids against these plots.