Pakistan

Lucrative: CDA fetches Rs3.24 billion from two-day auction

Seven commercial plots withdrawn due to unsatisfactory bid offers.

Danish Hussain March 27, 2013

Any bids received during te auction were presented before the CDA Board, who exercised final authority over whether to accept or reject them. PHOTO: FILE

ISLAMABAD: The Capital Development Authority (CDA) received bids worth Rs3.24 billion against seven commercial and 38 residential plots during a two-day planned auction.

During the second day of the auction a total of 14 commercial plots were offered to buyers of which seven fetched bids totalling Rs2.46 billion.

The remaining seven plots were withdrawn by the auction committee owing to low prices offered by bidders.

“CDA had offered a total of six commercial plots in Sector I-12 Markaz facing IJP road. However, the rates offered by bidders were lower than the reserve price estimated based on the current real estate market,” a CDA auction committee member said. He added that the CDA had decided to withdraw five of these six plots from the auction.

A plot in the Blue Area and one in Sector F-10/2 designed for the construction of a class-III shopping centre were also withdrawn.

The CDA had anticipated a hefty sum from the sale of a prized commercial plot owned by the Marriott Hotel but the Islamabad High Court issued a stay order against it on Monday.

Plot no. 3-A in the Blue Area received the highest bid, fetching around Rs644 million.

This was the third plot auction held since Tahir Shahbaz took over as CDA chairman on October 2, 2012.

The CDA had received mixed responses from buyers during its last two auctions, fetching Rs2.8 billion in November and Rs1.09 billion in December.

For financial year 2012-13, the CDA has generated funds amounting to an estimated Rs21 billion from the sale of its land.

The auction committee was headed by CDA Member Finance Azhar Ali Chaudhry and comprised Member Planning and Design Syed Mustafain Kazmi, Member Estate Shaista Sohail, Deputy Director General Finance, Director Estate Management-I, Director Estate Management-II, and Director Public Relations.

Any bids received during the auction were presented before the CDA Board, who exercised final authority over whether to accept or reject them.

Shahbaz, who visited the auction venue on Tuesday, said its success would ensure greater economic and developmental activity in the federal capital.

Published in The Express Tribune, March 27^th, 2013.