Since the two bidders were interested in different shops, the auction had to be cancelled. ILLUSTRATION: JAMAL KHURSHID
The Lahore Development Authority (LDA) was left red-faced on Tuesday as the fifth auction of commercial space at the Liberty Park and Ride Plaza failed to sell a single shop.
Only two bidders showed up for the auction, despite bullish talk from officials a day earlier forecasting high interest. Since the two bidders were interested in different shops, the auction had to be cancelled. The last two auctions had also failed to sell anything.
LDA officials posited various explanations for the failure. One official said that they should have lowered the reserve rates for the shops. A senior official said that some potential interested parties would have been put off by the requirement for a national tax number, as bidding millions of rupees for a shop or a restaurant space would have drawn the tax man’s attention.
Fifty-four shops and three restaurants were up for sale at the auction. The LDA sold 26 shops at the plaza in the first two auctions held back in 2011. But the third auction in late 2011 and the fourth in 2012 did not receive any bids.
LDA Director Estate Management 1 Nouman Khan said the reserve prices at the auction had been set by an evaluator approved by the State Bank. He said that the prices were “very reasonable” considering market prices for commercial plots. He said that the timing of the auction may have been a factor in the lack of interest, as it was close to Eid.
Khan said that he remained confident that the shops would be sold, “hopefully at the next auction,” as they were located in a “prime commercial area”.
The Park and Ride Plaza is an 11-floor structure located on 3.17 kanals and cost Rs677 million to construct. It has parking space for 308 cars at any one time, a backup generator and two capsule lifts. It contains security devices such as road blockers, car scanners, CCTV surveillance, a public address system, fire alarms and fire-safety equipment, audio links and emergency buttons that allow direct contact with a security booth or the local police station, and open stairwells and ramps. It also has accessibility features for the handicapped.
Published in The Express Tribune, October 9th, 2013.
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