The hitherto controversial plot of over 13.5 acres, reserved for a five-star hotel near Jinnah Convention Centre, was sold on Wednesday for Rs 4.88 billion, which is equivalent to annual budget of Capital Development Authority. Seven companies were in the run after pre-qualification of about 11 national and international firms to participate in the open bidding. However, Hashwani Hotels Limited, which had some reservation, did not participate in the bidding.
The investors would be given the facility of making payment in 15 years.
The highest bid, of Rs 75,000 per square yard, was offered by Faisalabad-based Bismillah Niagara Paragon (BNP), followed by Rs 72,000 by Tamimi Group of Saudi Arabia. Other companies in the race were L.G Luxur Group Mainland Husnain Pakistan Limited and Pearl Consulting Pvt Limited. The Pakistan Services Limited (PSL) of the Hashwani Group of Hotels did not attend the auction.
The hotel to be built would have 100 to 150 service apartments and 350 spacious rooms besides other facilities of world standard. The world class facility in the federal capital would also have several presidential suites to accommodate foreign heads of state.
CDA Chairman Kamran Lashari presided over the auction proceedings which were attended by Member (Admin) Brigadier Asad Munir, Member Finance, Kamran Ali Qureshi, Member Engineering Brigadier Syed Ghulam Akbar Bukhari and Member Planning and Design, Brigadier Nusratullah.
The bidding started from Rs 20500 per square yard, for 65098 square yards plot and culminated at Rs 75,000 per square yard in marathon bidding.
BNP group chief executive, Abdul Hafiz Sheikh, expressed full satisfaction over the transparent process of bidding and said that it would be a landmark hotel in the capital.
He said: "Our group is affiliated with Ritzcarton chain of hotels in USA and Lemaridian French Hotels chain and would construct a real beautiful five-star hotel in the most beautiful city of Pakistan.
He said that the CDA has given the deadline of 2009 for completion of the hotel. However it would be completed well before that at a cost of Rs 10 billion, including land price.
Hafeez said that in fact there is no real five-star hotel of world standard in the country, and it is needed in the Federal Capital to accommodate world leaders.
Kamran Lashari told journalists that President Pervez Musharraf and Prime Minister Shaukat Aziz were interested in the project and had directed the CDA to make arrangements for meeting the function requirements.
He said the Authority's objective is to provide maximum facilities to the investors to attract more and more investment in the real estate and commercial sectors. The construction of a five-star hotel would be a prestige for the Capital as important conferences take place here, and the construction of world class hotel was need of the hour.
Lashari said that the unprecedented grace period of 15 years for the investors is aimed at attracting more foreign investment into the country. However, some of the investors were of the view that the price of land in Islamabad is much higher than the neighbouring countries, and even UAE.
They urged the Government to control the sky-rise prices of land to a reasonable level so that more local and foreign investors could come.
Akram Farid, a former Islamabad Chamber of Commerce and Industry (ICCI) president said that there was a dire need for a real five-star hotel in the capital. Being the capital city there should be a world class hotel in the city to arrange the international conferences, he added.
CDA Chairman told the newsmen that bidding for shopping mall plot reserved in Blue Area would be held at CDA Headquarters on March 12.
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