Zubair Qureshi
The landmark auction of the Blue Area Commercial plots by Capital Development Authority concluded at Jinnah Convention Centre on Friday.
The three-day auction proceedings held in the backdrop of Prime Minister’s package for construction industry.
According to a statement issued by the CDA public relations department, the auction proved to be a major success for the government and the CDA, as it attracted a large number of investors who made this event an historic success and promoted a culture of business and investment friendly policies of the government and CDA.
Collectively the auction committee of the CDA received bids for 15 plots amounting to Rs22 billion, the committee, however considered bids for 12 plots amounting to Rs17.04 billion. On third day of the auction the committee considered the bids for four plots amounting to Rs4.26 billion. On the second day of the auction proceedings, the committee considered bids of four plots amounting to Rs5.54 billion.
On the first day the committee received auction bids against seven plots amounting to Rs11.7 billion. The auction committee however considered offers for four plots amounting to Rs.7.25 billion which was equal to the expected proceeds from this auction as per CDA budget estimates. Largest plot presented for auction was 7000 square yards and highest bid Rs1.5 million per square yard was received. Furthermore, 50% inventory has been sold. Chairman Capital Development Authority has thanked the investors for their participation in the auction proceedings and reposing their confidence in the government and CDA policies. The chairman on this occasion said enormous success of auction was reflection of the fact that business and investor community is happy with business friendly atmosphere in Pakistan in general and Islamabad in particular.
He added that CDA would provide one-window facilitation to successful bidders to ensure that construction activity on auctioned plots starts at the earliest for activation of economic activities and generation of employment opportunities in the country as per vision of the Prime Minister.
He further appreciated the Auction Committee and the entire auction team for making this auction a success.
CDA had announced special incentives for this auction which include dedicated team to facilitate incentive at every step, first installment of 25 percent within 30 days of bid acceptance, building plan approval facility after first installment and 10 percent discount on full payment in advance. Similarly advance income tax on pro rata basis and 100 percent coverage for less than 1000 sq.yd. plots. 70 to 75 percent coverage, every plot with all round circulation strip, ample public parking while application of newly developed building bye laws, approval of building plans after first installment and the bidders who get their building plans approved by December 31, 2020 will be eligible for the benefit of PM package for construction industry which include reduction in tax rate from 29% to 10% and exemption from source of income declaration.