No takers for Chalmers mixed development project

Thursday, 21 June 2018 00:00 - - {{hitsCtrl.values.hits}}

Failing to attract investors for the Chalmers Granary Commercial Property Mix Development Project, Government this week decided to renew the call for investment proposals giving different financing options, including the opportunity to set up a joint venture with the UDA.

The Standing Cabinet Appointed Procurement Committee called for Request for Proposals (RFPs) to develop the land on a 99-year lease period in October 2017, but received no proposals by the closing date in March this year. Further, only five investors out of 16 who collected the RFP documents attended a meeting called by the Ministry of Megapolis and Western Development. Following discussions with the potential investors, the Ministry has developed three options for payments for the leased land to re-announce bidding process.

Option one requires the investor to pay 25% of the value offered for the land within 30 days of intimation of the award of project, with the rest payable within three months of the initial payment or the commencement of the lease agreement. The investors also have the option of paying 25% of the value within 30 days of intimation of award of the contract, followed by another 25% to be settled within three months of the date of initial payment, and the balance 50% with 11% annual interest to be paid until the asset developed is handed over to the UDA by the developer. The third option outlined by the Ministry gives the investor the flexibility of paying 25% of the value offered for the land within 30 days of intimation of the award of project, another 25% to be settled within three months of the date of initial payment and, the balance 50% with 11% annual interest should be set off from the allotment of shares to the UDA, by way of a Joint Venture company.