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IDBI plans e-auction of Chennai propertyThursday 22, June, 2006 Cashing in on the spiralling property prices, another bank has put a prime residential property in an upmarket Chennai locality on the block, once again through the online auction route.IDBI proposes to sell its over 1,00,000 sq ft property on Boat Club Road, an upmarket locality in South Chennai. The reserve price is Rs 132 crore, which works out to slightly more than Rs 13,000 per sq ft, and the bank proposes to sell the property through the online forward auction method. Interested parties may submit their applications with an earnest money deposit of Rs 50 lakh by July 17. There are two buildings, each more than 40 years old. The ground floor of both the buildings is spread over 3,400 sq ft and the first floor about 2,100 sq ft. One building was used as a guesthouse and the other as a residence. The property will be sold in `as is where is' condition excluding the furniture, air-conditioning equipment, crockery and kitchen utensils. Bank sources said that unlike past tendering systems, bids for this purchase would follow a modified negotiation process using Internet-based e-bidding capabilities and a process that allows bidders to submit bids interactively in a real-time market. Participants can view the competition and react immediately knowing what their position in the market is. The auction will be held on June 22 and CB Richard Ellis, an international real estate consultancy firm, will conduct the auction. The first time a property was sold online was a year ago, when HSBC opted for the e-auction route to sell four of its prime properties in Mumbai, Chennai, and Kolkata. In November 2005, HSBC sold its 28,000 sq ft residential property called Runnymede in Boat Club area of Chennai for Rs 42 crore. Recently, the TVS group put 55,344 sq ft of vacant land in Boat Club Road up for sale through e-auction. |
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