CDA gets richer by Rs641m

[LahoreEstate]

Committee holds back some commercial plots for next bidding

Sunday, May 31, 2009
by Mobarik A. Virk

Islamabad

At the end of the two-day open auction of residential and commercial plots on Saturday, the Capital Development Authority (CDA) ended up richer by a little over Rs641 million.

The CDA’s committee supervising the open auction resisted the temptation and decided to hold back most of the commercial plots that were scheduled to be auctioned having assessed the lack of interest on part of those participating in the activity. However, still at the end of the day the CDA was richer by another over Rs382 million through the auction of these only six commercial plots.

On the first day on Friday the authority disposed off 23 residential plots located in sectors D-12/4, G-10/2, G-103 and I-8/4 for a total earning of Rs258.38 million.

The FA/Member of the authority, Saeed-ur-Rehman, told ‘The News’ that the committee supervising the auction noticed this lack of interest on part of the people present on the occasion for the auction of commercial plots. “On sensing the mood of those taking part in the auction the committee decided not to press with the agenda at hand and held back most of the plots that were up for auction on the day. However, the six plots that were auctioned drew the bids way beyond the expectations and the process was keenly contested,” he added. “I would not put today’s proceedings, as adverse in any way. It was just that we felt that the bidders were getting somewhat disinterested. On realising the fact the committee supervising the auction decided to hold back the remaining plots for the next auction,” Saeed-ur-Rehman told ‘The News’.

The highest bid in today’s auction for commercial plots came for a commercial plot measuring 277.77 sq yard in G-9 Markaz that went as high as Rs315,000 per sq yard, fetching a total price of Rs87,497,550. The biggest commercial plot auctioned on Saturday was 888.88 sq yard located in the posh F-11 Markaz. The highest bid for this plot was Rs223,000 per sq yard, fetching Rs198,220,240 to the CDA. There were two plots measuring 355.55 sq yard in the ‘Cloth Market’ in sector I-11/3, each sold for Rs18,844,150 as both fetched identical bids of Rs53,000 per sq yard. Another plot in the ‘Sanitary Ware market section’ of sector I-11/3, measuring 577.77 sq yard was auctioned for Rs32,355,120 at the rate of Rs56,000 per sq yard. Only one ‘Industrial Plot’ in sector I-9, measuring 1,120.82 sq yard came under the hammer at a total cost of Rs26,899,680, at the rate of Rs24,000 per sq yard.

The FA/Member of the Authority, Saeed-ur-Rehman, told ‘The News’, “We auctioned the ones for which we received the bids that were acceptable to us. In fact the bids received for the six plots auctioned today were way beyond the ‘reserved price’ as well as beyond our expectations. The start was indeed very positive. But then suddenly there was a ‘mood change’ that compelled the committee to do some quick thinking and hold back the rest of the plots instead of letting those go under the hammer at unacceptable bids,” Saeed-ur-Rehman said.

The full auction committee headed by the FA/Member and including Member (Estate) Brigadier ® Asad Munir, Member (Planning & Design) Syed Tanvir Bukhari, Director (PR) Muhammad Asim Khichi, Director (Estate Management-I), Director (Estate Management-II), Director (One Window Operation) and Deputy financial Advisor-II.

http://www.thenews.com.pk/daily_detail.asp?id=180466