ISLAMABAD: Despite spending millions of rupees on advertisements and making tall claims, the incumbent management of the Capital Development Authority (CDA) has failed to sell even a single hotel plot in its latest auction, prompting the authority to postpone the scheduled auction of petrol pump sites as well.
The auction of five hotel plots worth billions of rupees was held on Monday but received a lukewarm response from investors, while the auction of seven petrol pump sites, scheduled for Tuesday, was postponed on the orders of the CDA chairman.
According to sources, only five participants registered for the hotel plots auction, while bids were received for just one plot. The offer reportedly exceeded the reserve price by a mere Rs5,000. However, the bid was rejected due to a lack of competition, leaving all five hotel plots unsold.
Investors reportedly expressed reservations over the high reserve prices fixed by the authority, arguing that rates exceeding Rs1.9 million per square yard were unrealistic. They maintained that the plots should be valued at no more than Rs1.3 million per square yard.
The CDA had planned to auction five hotel plots and seven petrol pump sites in Islamabad on Monday and Tuesday, respectively, as part of its efforts to generate revenue through the commercialisation of prime public land.
The hotel plots offered for auction included Plot No. 22 in D-12 Markaz, Convention Centre Hotel Plot No. 6 and Five-Star Hotel Plot No. 8 in F-5/1, a hotel plot in the Northern Strip of E-11, and a site along Srinagar Highway between the Sports Complex and Margalla Hotel.
Meanwhile, the authority also postponed the auction of seven petrol pump sites that was scheduled for Tuesday. The auction was restricted to registered oil marketing companies (OMCs), with the sites planned to be offered as a single package on a 20-year lease.
The proposed petrol pump sites were located along Murree Road near Lake View Park, in Blue Area, F-10, I-12 Markaz, G-8 Markaz, G-8/1 and G-11/1.
Sources said preparations for the petrol pump auction had been completed and several oil marketing companies were interested in participating. However, at the eleventh hour, the CDA chairman ordered the postponement of the auction until a new date is announced.
The decision came after the authority failed to attract meaningful investor interest in the hotel plots auction, raising questions about its pricing strategy and efforts to attract private investment in Islamabad’s commercial real estate market.
The CDA has yet to announce a fresh date for the auction of the petrol pump sites.
