|
|
|
|
|
The Privatisation Commission received a bid for the sale of the assets of
Karachi Hotel Project formerly allotted to Hyatt Regency Hotel Project on 'as
is where is' basis here today. Dr. Abdul Hafeez Shaikh, Federal Minister for
Privatisation & Investment, who is also Custodian for Hyatt Regency Hotel
Project supervised the opening of the sealed bid.
Addressing on this occasion Dr. Hafeez Shaikh stated that for the sale of the
assets of HRP, a decades old case, the procedure adopted was in accordance
with the Privatisation Commission's normal practice and in line with the
Supreme Court directions.
The Supreme Court has dismissed a CPLA on November 17, 2003 and also recalled
the stay order passed, earlier. The Transaction was brought to the bidding
point after hectic efforts made during the past one-year. The matter remained
under litigation at Sindh High Court and the Supreme Court. The Custodians for
the property have been appointed from time to time under Martial Law Order
1985.
The floor price for the property was set as Rs. 475 million. Bids were invited
through public advertisement. One sealed bid was received from Aqeel Karim
Dheedhi Securities. The Supreme Court allowed on November 17, 2003 the opening
of the sealed bid. The sealed bid box was opened in the presence of the
representatives of the media and the bid envelope was shown to the bidder who
confirmed that the envelope was intact, which was later opened. The recorded
bid offer was Rs. 480 million. The PC asked the bidder to improve the bid as
per bidding instructions, which was later improved to Rs. 530 million by the
bidder to bring it to an acceptable level. The buyer has expressed his desire
to utilize the property for public service by establishing a Commodity
Exchange, which will add activity in the prime business location of Karachi.
The PC will now submit the bid, which is above the reference price to the
Government for approval. In case of acceptance of the improved offer, the
successful bidder will be required to deposit 50 % of the bid price within
seven days after the issuance of the Letter of Acceptance (LOA), while
remaining 50 % offer price can be deposited over a period of 60 days.
The project is available on a 99-year lease from the date of signing a
restricted commercial use leasehold agreement, between the successful buyer
will also be required to pay a lease-rent of Rs. 556,745/= per annum for the
first ten years, which will be enhanced after review every ten years.
The project is constructed on land measuring over 10,000 square yards. It is
located at the inter-section of Maulvi Tamizuddin Khan Road and Dr.
Ziauddin Ahmed Road. It is a prime business location of Karachi and directly
faces Sheraton Hotel, Pearl Continental Hotel and the PIDC House.