LDA grand auction

[Salman]

LAHORE

IN a grand auction here Thursday, Lahore Development Authority (LDA) successfully auctioned tenancy rights of one of its rooftop restaurant on unexpected high values.

Officials said tenancy rights of the rooftop restaurant at the 10th floor plaza at Moon Market, Allama Iqbal Town, were auctioned by LDA in a sum of Rs11.7 million per year. Officials said tough competition was observed at this occasion as the competitors enthusiastically offered their bids.

They said the bid starting price for this highest rooftop restaurant, covering a space of 14,211 square feet, had been fixed as Rs60/square foot/ month whereas it fetched a price of Rs69/square foot/month, amounting to a total of Rs0.98 million/month or Rs11.7 million per year. They said the restaurant has been rented for a period of 10 years. The successful bidder will avail the facility of first six months’ rent-free use of the site. The auction was held at LDA Community Centre, New Muslim Town, Lahore. Similarly, the LDA auctioned three marquee sites in Johar Town, which were auctioned at unexpected high value. Officials said the start bid price of two marquee sites was fixed at Rs210,000 per month but one was auctioned at around Rs1.5million per month while the other was auctioned at around Rs1.4 million/month.

During the auction, a total of 12 plots, including eight commercial and two residential plots were also auctioned against a sum of Rs34 million. Officials said 24 commercial plots of Johar Town, Model Town (Extension), Packages Area Quarters, Sabazazar and Gujjarpura were placed in the auction out of which 12 were sold out. Officials said as per terms and conditions of marquee sites, each site shall be leased out for a period of three years. The period of lease may be extended for two years. However, the total lease period (including extension) shall not exceed five years while there will be an increase of 10 percent in the existing rent every year.