The Privatisation Commission has auctioned the Services International Hotel in Lahore at the highest bid of Rs1.951 billion against the reserved price of Rs1.949bn with the small difference between the two prices raising some eyebrows.
Only two bidders participated in the auction and a renowned real estate developer of Lahore, Faisal Town Pvt Ltd, emerged successful, according to an official announcement.
Federal Minister for Privatisation Mohammad Mian Soomro, who chaired the process, termed the auction a success of the Privatisation Commission and said the government believed in merit and transparency in the auction of state-owned properties.
He said that the auction had fetched more than the base price, adding that main purpose of the auction was to reduce the burden of debt retirement on the country.
Sources in the Privatisation Commission explained that the reserved price was fixed following market valuation as the Services International Hotel was not functional. Successful bid for property spread over 15 kanals is Rs2m above reserved price.
