No takers for Tulip Star
There were no bids for the mammoth 24,706 sq m hotel at Juhu during an auction; realty experts say the lack of offers exposes the present slump in the industry
The Tulip Star Hotel has set a reserve price of Rs 1,315 crore.
The failure of the auction also is a matter of concern, said some experts. “The reality of the realty market is now exposed. The fact that no one came forward to buy such a prime piece of property shows that there is a real serious liquidity crunch and even top builders, businessmen cannot afford such prices,” said Ajay Chaturvedi, CEO of Accommodation Times, a real estate-centric newspaper.
Others added that the fact that the hotel was not bought showed that it was not just the common man who was facing problems. “The economy is bad and while the sales for homes is low, even top businessmen cannot bring in the money to buy homes. The deal falling through shows that the real estate market is going through a rough patch,” added Prakash Rohira of Kkarma realtors.
Our calls to Asset Reconstruction Company (India) Limited (ARCIL), proved futile, as the person on the other end refused to share any information. He said, “We are under a non-disclosure agreement (NDA), and hence can’t disclose anything about it.” A message asking them whether they had got any bids also got us no results.
Source:- Midday
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