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No buyer for BMC property in mall

Published: 24th August 2013 12:18 PM  |   Last Updated: 24th August 2013 12:18 PM   |  A+A-

There are few takers for the Bhubaneswar Municipal Corporation (BMC) properties in the Bhawani Mall shopping complex in the city.

BMC owns 76,796 square feet space in the shopping complex and the Housing and Urban Development Corporation (HUDCO) has estimated the cost of the property at Rs 8,550 per square feet.

BMC’s share is spread across four floors including car parking space. The BMC has fixed the cost of parking space at Rs 1.5 lakh per car.

The shopping complex was developed by BMC in Saheed Nagar in public-private partnership (PPP) mode.

Despite BMC advertising for auction of its share twice in the past, no bidder evinced interest.

Burden of the unused property is weighing heavy on BMC’s shoulders as it was expecting to garner between Rs 80 crore and Rs 100 crore from it.

“We were planning to undertake infrastructure developmental projects with the revenue generated from the auction. But it has not been possible till now,” said a senior BMC official.

Keeping the situation in mind, HUDCO advised BMC to reduce the property rate by 10 per cent in next advertisement as investment in real estate is on a decline.

However, BMC is reluctant to reduce the rate and is now looking at alternate ways like leasing or renting the property. The final decision will be taken by the State Government.

Sources said another reason for investors not coming forward to buy the property is the dilapidated road adjacent to the shopping complex.

The private collaborator of the mall had paid BMC Rs 65 lakh for peripheral development of the property, but work on the road is yet to start due to an electrical sub-station and poles in the mall’s vicinity.

A BMC official said they have asked Central Electricity Supply Utility (CESU) to shift the sub-station and poles. CESU recently submitted the budget estimate for the project.

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