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Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment
will preside over the signing ceremony of the Conveyance Deeds, Share Purchase
Agreement of Faletti's Hotel on February 24, 2005 (Thursday) in the conference
room of Privatisation Commission at 1000 hours (Sharp).
Faletti's Hotel, Lahore is a historical landmark, situated in the commercial
and business centre of Lahore on an area of approximately 68 kanals. Faletti's
Hotel was established in British India in 1880. It has 44 residential rooms,
banquet halls, restaurants etc. The highest bid for this Hotel of Rs. 1211.1
million by 4 B Marketing was approved by the CCOP on May 31, 2004 and the PC
issued a Letter of Acceptance to the Successful Bidder on June 2, 2004. The
payment of the Sale Price by 4 BMarketing to the PC was made on July 2,
2004.
Earlier, Privatisation Commission initiated the process of privatisation of
Faletti's Hotel on August 21, 1997. An Agency Agreement was made on January 9,
1998 by and between Associated Hotels of Pakistan, a public limited company
incorporated in 1961 and the Ministry of Finance, acting for and on the behalf
of the Government of Pakistan through the Privatisation Commission. By the
agreement AHP appointed PC as the agent to market, advertise and sell Cecil's,
Deans and Faletti's Hotel. (PTDC holds 86.8% of the share holding of the three
hotels whereas private investors hold the balance. AHP hotels were on a lease
to PTDC for a period of 50 years at an annual payment of Rs. 1 million since
1992).
Privatisation of Faletti's Hotel was attempted earlier and bidding was held
twice in 1998 and 2002. All these attempts failed on account of lower bids.
The PC in December 2003 reinitiated the process and the hotel was brought up
for bidding for the third time on an 'as is where is basis' by advertising in
the national press soliciting Expressions of Interest. As per the decision of
the Cabinet Committee on Privatisation (CCOP), the entire plot of 68 kanals is
to be restricted for the construction of a quality hotel while maintaining the
façade and architectural aesthetics of the existing structure as well as
dedicating two suites to the memory of Quaid-e-zam and Justice A.R. Cornelius.
The absolute transparency of the transaction and achieving record price for
the assets has been highlighted in the major newspapers of the country. This
transaction augurs well for future investments in the hospitality/ tourism
industry. Furthermore, this successful transaction is symbolic of the fact
that investor's perceptions about Pakistan have improved significantly. The
privatisation of Faletti's Hotel will ensure that an important cultural and
historical landmark of Lahore will become operational in about three years
time thereby revitalizing the dead assets lying unused in the heart of Lahore.