PC RECEIVES FULL PAYMENT FOR HYATT REGENCY KARACHI HOTEL PROJECT FROM SUCCESSFUL BUYER

Islamabad, January 30, 2004

M/s. Aqeel Karim Dhedhi Securities (Pvt.) Limited, the successful buyer of  Karachi Hotel Project (Hyatt Regency Hotel) had deposited full sale price of Rs. 530 million to the Custodian (Chairman Privatisation Commission) on 28 January 2004. Pending the finalization of legal documents which are under process and will be completed shortly, the possession of the Karachi Hotel Project was handed over on behalf of the Custodian of the Karachi Hotel Project to M/s. Aqeel Karim Dhedhi Securities (Private) Limited in Karachi on 29 January, 2004. However, formal ceremony in this regard will soon take place.

The Privatisation Commission had received the bid for the sale of the assets of Karachi Hotel Project formerly allotted to Hyatt Regency Hotel Project on 'as is where is' basis on November 19, 2003. 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 had 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. 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 project is available on a 99-year lease from the date of signing a restricted commercial use leasehold agreement between the successful buyer and he 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.