ISLAMABAD, Aug 9: The Capital Development Authority (CDA) on Tuesday received the highest ever instalment of Rs1.55 billion for the six-acre land auctioned for the construction of a shopping mall and a five star hotel in Blue Area.

A senior official of the CDA told Dawn that with the payment of first instalment, which was 25 per cent of the total cost of the auctioned land, the auction deal between the company and the CDA had matured.

The land, located in front of Pakistan Institute of Medical Sciences (Pims), had been auctioned in March at the cost of Rs6.09 billion. Some five companies had participated in the bidding.

The official said it was the highest ever instalment the authority had fetched, as before this the highest instalment amounted to Rs750 million paid by the BNP Group that was constructing a five star hotel near Jinnah Convention Centre.

The successful bidder, Al-Tamimi Group/Sardar Builders, a Saudi Arabia-based group, has registered the company as Pak Gulf Company with Securities and Exchange Commission of Pakistan. The shopping mall and the hotel would be constructed by November this year.

The official said the company would pay the rest of the amount in quarterly instalments in three years.

He said the company would shortly sign a contract with ATKINS Group of England for the construction of the shopping mall and the hotel.

He said the shopping mall would be inward oriented, as under the agreement signed between the CDA and the company, shops would be constructed inside the plaza.

The official said President General Pervez Musharraf and Prime Minister Shaukat Aziz had already directed the CDA to establish international standard hotels in Islamabad where international events could be held.

The land has been auctioned on 33-year lease which would be extendible for two times to stretch it to 99 years.: Auction of six-acre land