Better policy: CDA gets windfall in commercial plot auction

Efforts to bring in investors from Lahore, Karachi remained futile.

ISLAMABAD:

Despite the Capital Development Authority’s (CDA) efforts, investors from Karachi and Lahore did not seem interested in Islamabad’s commercial real estate during a three-day auction the commenced here on Monday.

The authority had offered investors from Lahore and Karachi the opportunity to participate in the three-day event via video link.

“The video links remained operational throughout the auction proceedings but only two participants from each city made it to the designated venues,” said an official of estate management wing who is part of the auction committee. “Even those who made it did not bid against plots.”

However at the Convention Centre in Islamabad, investors’ participation was unusually high. Contrary to past auctions, more investors offered bids on the higher side.

The civic body received bids worth Rs 5.5 billion against six commercial plots in various developed sectors of Islamabad including Blue Area, Diplomatic Enclave, and sectors I-8, F-7, F-8, F-10 and G-11.



The highest bid of Rs2.72 billion was received against a plot in F-10 Markaz followed by a Rs1.07 billion bid for a plot located next to Centaurus Mall in Blue Area. Three of the plots presented for bidding were withdrawn after not getting significant bids.

The authority is to present a total of 56 commercial plots during the event and is expecting total revenue generation of around Rs 20 billion.

“Compared to the past auctions, the plots presented during the ongoing one has have fetched much higher prices, which is a testament to a rich response and confidence of investors. It is all due to the recently devised transparent and investment friendly policies of the CDA,” said a statement issued by the authority.

The bidding proceedings remained in session for over 6 hours and were supervised by an auction committee headed by the CDA member finance. The committee will be submitting its recommendations to the CDA Board — the final approving authority.

Published in The Express Tribune, November 19^th, 2013.