ISLAMABAD: Auctioned during the era of Pakistan Tehreek-i-Insaf government in 2021, the formal transaction of the Services International Hotel in Lahore concluded in Islamabad on Friday with the signing of sale agreement.
The sale agreement was signed between Punjab Cooperative Board for Liquidation (PCBL) and Civic Company (Pvt) Limited (CCCL), Lahore Development Authority (LDA), Privatisation Commission and the buyer, Faisal Town Ltd, a real estate developer, at the Privatisation Commission in Islamabad.
The hotel was auctioned more than three years ago at the highest bid of Rs1.951 billion against the reserve price of Rs1.949bn. Only two bidders had participated in the auction, and Faisal Town Limited emerged successful.
The hotel, a state-owned entity, is spread over 15 kanals on Upper Mall and surrounded by some of the prime traffic arteries of Lahore, and accessible from multiple routes.
The LDA has already approved the commercial status for the property, allowing construction for all asset classes on the land.
Minister for Privatisation and Chairman of Privatisation Commission, Abdul Aleem Khan, witnessed the signing of sale agreement ceremony. The approval of the auction was approved by the federal cabinet three months after the auction.
Faisal Town had been declared the successful bidder by the Privatisation Commission after an open public auction held in August, 2021.
The minister for privatisation thanked all the stake holders, including the Punjab government, for their cooperation in amicable resolution of all pending issues to conclude the transaction. He emphasised the need for a whole of government approach in implementing the privatisation programme and attracting private sector investment. In less than five months after the auction, the Punjab Cooperative Board for Liquidation went into litigation before the Lahore High Court, through a cooperative petition, titled ‘Punjab Cooperative Board for Liquidation versus Civic Centre Company Limited and Others’. This resulted in the delay in the transfer of Services International Hotel to the successful bidder. The case was finally disposed of the Lahore High Court vide its order September 20, 2024.
Any potential development on the property will have a strong infrastructure catering to the traffic flow of the envisaged development which shall ensure that the hotel site is highly accessible and has ample access to public transport.
The site is also a prime property with strong visibility due to its prestigious location which further adds value to a potential development. Some notable landmarks including Lahore Gymkhana, Race Course, Fortress Stadium and some high-profile government buildings are also located in close proximity, further adding to its appeal.
Published in Dawn, November 24th, 2024
