CDA may reject highest offers for commercial plots

[Salman]

CDA may reject highest offers for commercial plots

The Capital Development Authority (CDA) is unlikely to accept highest offers from all successful bidders of four commercial plots, which were offered for auction in a closed door bidding last week.

Sources in the CDA said that the authority would fetch little over Rs4 billion from auction of four plots on prime land of Islamabad if all offers were accepted.

However, a CDA source told ‘The News’ that they were expecting to raise over Rs5.5 billion but the target could not be achieved.

An official of the civic body said that the CDA board was the final authority to okay bids. “But it is unlikely that all offers will be accepted,” the official requesting not to be named said.

It has been learnt that the file for acceptance of bids would be taken up in the next meeting of the CDA board.

He said that Plot No. 1 and Plot No. 2, measuring 2,600 square yards each, in the extension of Blue Area (Sector F-8) where a 20-storey plaza would be constructed, received the highest offer of just Rs251,000 per square yard. “The offers seem to be unacceptable as we were expecting over Rs350,000 per square yard for these commercial plots,” the official said adding that they would have to go for re-bidding.

The cost of these two plots if offered in re-bidding could fetch around one billion rupees from existing highest bid of Rs652 million (Rs0.65 billion) each. The CDA could get much better price of its valuable plots if they attempt open auction of the property.

Another plot, measuring 4,800 square yards, had received the highest bid of Rs1.25 billion at the rate of Rs261,000 per square yard and a plot measuring 1.59 acres meant for luxury apartments near the US embassy in Diplomatic Enclave received the highest bid of Rs1.4 billion at the rate of Rs135,000 per square yard.