ISLAMABAD, Nov 19: The Privatisation Commission on Wednesday received a bid price of Rs530 million for the sale of the assets of Hayat Regency Hotel in Karachi.

The Supreme Court of Pakistan, which had earlier sealed the bid, allowed the commission on Nov 17, 2003 to open it. The Supreme Court vacated the stay order passed earlier.

The floor price for the property was set as Rs475 million. Bids were invited through public advertisements. One sealed bid was received from Aqeel Karim Dhedhi Securities.

The Supreme Court allowed on Nov 17, 2003 the opening of the sealed bid. The sealed bid box was opened in the presence of the bidder and later opened when the bidder confirmed that the envelope was intact.

The recorded bid offer was Rs480 million. The commission asked the bidder to improve the bid as per bidding instructions, which was later improved to Rs530 million by the bidder to bring it to an acceptable level.

The prospective buyer has expressed his desire to utilize the property for public service by establishing a commodity exchange.

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 per cent of the bid price within seven days after the issuance of the Letter of Acceptance (LOA), while the remaining 50 per cent offer price could 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 government and the successful buyer who will also be required to pay a lease-rent of Rs556,745 per annum for the first ten years, which will be enhanced after review every ten years.

The project is constructed on land measuring over10,000 square yards.