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PPB to hold auction for Rs 1b property sale - Salman - 12-16-2011 02:53 PM
PPB to hold auction for Rs 1b property sale
LAHORE - The Punjab Privatization Board (PPB) has announced to sell over seven mega state-owned properties worth Rs1 billion by the end of the current month while their auction will be held next week.
PPB Secretary M Aashiq Ch talking to The Nation said that the properties are located in Faisalabad, Pindi, DG Khan and Lahore, showing his hope that the Board will be able to receive at least 50 percent of the price of his expectations as recession in real estate business has kept the potential investors away from the market.
He said that the PPB, on average, conducts the biddings of around 10 properties in one and a half months, out of which one or two properties are sold out. But in previous years when situation was better, the board usually succeeded to sell almost half of the properties of the total put on the auction.
He said though the PPB was trying its best to sell properties through giving advertisements in print media and holding open biddings in several cities, but the worsening law and order situation and soaring inflation have lead to a slump in property business. He said that when the situation was better the PPB succeeded in selling over 12 mega state-owned properties worth Rs1 billion while overall properties of Rs4 billion have been sold out in various districts of the province, out of which Rs2.8 billion have been recovered during the last one and a half years.
He said that the board has yet to sell 64 mega and over 1,000 properties worth Rs30 billion, adding that the PPB will sell 64 mega properties on its own while rest of the small properties through respective district administrations. He said that as per rules the board was bound to sell properties on the rates evaluated by the committees in the concerned districts which is headed by the DCOs.
He said that the board has now decided to sell mega state-owned properties by dividing them into small plots. The decision was taken by the PPB as it received a lukewarm response from the buyers. He added that as the PPB is receiving a tepid response from the investors in this regard, it have sought help from the district governments and town municipal administrations to develop the properties to attract the buyers. He said that such properties of billions of rupees are situated in Lahore, Multan, Faisalabad and Rawalpindi. He said that the properties situated in Lahore comprised huge chunk of land and required immediate development and division into small plots. He stated the PPB after development work wanted to sell these properties in competitive atmosphere to attract maximum investors in the upcoming open auctions. Responding to a question, regarding 1,000 kanal property situated near to Expo Centre in Johar Town, he observed the land was owned by the Lahore Development Authority and provincial government asked the PPB to sell it.
He said that the PPB held two open auctions but no one shown any interest to purchase the huge chunk of land. After receiving disappointing response the PPB management asked the LDA to first develop and convert this land into small plots and then put it on sale in the open auction, he added.