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CDA fetches over Rs. 17 billion as Final Outcome of 3 Day Blue Area Auction

CDA fetches over Rs. 17 billion as Final Outcome of 3 Day Blue Area Auction:

Islamabad: July 17, 2020: Landmark auction of Blue Area Commercial plots by Capital Development Authority concluded at Jinnah Convention Centre today. The three days auction proceedings started on 15th July. The auction was held in the backdrop of Prime Minister’s package for construction industry. The auction proved to be a major success for the government and CDA as it attracted a large number of investors who made this auction a historic one and put seal on business and investment friendly policies of the government and CDA.

Collectively Auction Committee of CDA received bids for 15 plots amounting to 20.3 billion rupees. The Auction Committee however considered bids for 12 plots amounting to 17 billion rupees. On third day of the auction the Auction Committee considered the bids for 04 plots amounting to 4.26 billion rupees. On second day of auction proceedings, the Auction Committee considered bids of four plots amounting to 5.54 billion rupees. On first day the Auction Committee received auction bids against seven plots amounting to 11.7 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 1.5 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 that enormous success of this auction is 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 will 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. The Chairman 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.

CDA had constituted a committee consisting of 10 members to conduct the auction. Member Finance CDA is chairman of the committee while Member Estate, Member P & D, DFA-II, DG Law, Director Public Relations, Director Urban Planning, Director Regional Planning, Director EM-II and Director Finance are members of the committee.

Bids received will be presented before CDA Board which is competent forum for acceptance of bids.