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Chennai , Aug. 2
 IT may well be the first time in the country that prime
residential properties are being sold through an electronic
auction. The seller — the Indian subsidiary of the Hongkong
and Shanghai Banking Corporation Ltd (HSBC), which has put
seven properties in four cities on the block — is confident
that the e-auction will attract more than the normal buyers.
The bank is confident of getting more than Rs 50 crore in all
for these properties, and hopes to complete the sale in the
next few months.
HSBC India will be the first in the group to conduct such a
sale, according to bank officials. The first to come for
auction in cyber space will be three flats in Mumbai's
upmarket Malabar Hill, each over 2,000 sq ft, followed by an
independent house in Chennai, a flat in Bangalore and two in
Kolkata.
HSBC opted for an e-auction rather than the traditional route
for the transparency that the bidding process offered and the
speed at which the deals can be completed.
"The e-auction process will be transparent, open and fair to
all bidders," said Mr Simen Munter, Chief Operating Officer,
HSBC India. Each bidder can see the price another bidder has
quoted without knowing the identity of the bidder, he added.
The traditional method of selling — appointing a broker,
advertising for the properties and then waiting for the
highest offer — was time consuming and would result in a
number of non-serious buyers wanting to look at the property,
bank officials said.
In Chennai, the bungalow — Runnymede — is on an 11-ground
plot (about 26,400 sq ft) in the upmarket Boat Club area.
According to real estate industry sources, this property can
fetch up to Rs 2 crore a ground (2,400 sq ft).
For the e-auction, HSBC has appointed Mr C.B. Richard Ellis,
an international real estate consultancy firm, as its
adviser. Prospective bidders have to pay a deposit of Rs 5
lakh to participate in the auction. This will be adjusted
against the bid amount in the case of successful bidders,
while it will be refunded for others.
According to Ms Malini Thadani, Senior Vice-President -
External Affairs, HSBC, the auction in Mumbai was to have
been completed last week, but has been postponed due to the
rains. The bank hoped to complete the sale next week.
The bank has put the properties on the block due to a change
in its accommodation policy for senior executives. The bank
has given them the option of choosing their own accommodation
or staying in apartments owned by the bank. The properties
that are being sold have been freed up because of this change
in policy, she said.
Mr Munter said that the bank would fix a floor price for each
of these properties. It would advertise in newspapers for
these properties (this process has been completed in the case
of Mumbai) after which the real estate consultant would walk
prospective bidders through the process of the auction,
giving them a chance to view the properties.
Mr Munter and Mr Kapil Bedi, who is in charge of purchases at
HSBC, were confident that the e-auction route would attract
more bidders than the traditional selling process. For the
Mumbai properties, there were 43 bidders, including from
overseas.
According to Mr Munter, HSBC will use an e-trading platform
developed by A.T. Kearney, a consultancy, for the group
worldwide. The bank used this platform for its online
purchases and the Indian subsidiary was now using it for a
sale process. The high level of IT literacy among the bank's
target group was one of the reasons for HSBC to opt for the
e-auction route to sell the properties, he said.
Chennai: It may well be the first time in the country that
prime residential properties are being sold through an
electronic auction. The seller - the Indian subsidiary of the
Hongkong and Shanghai Banking Corporation Ltd (HSBC), which
has put seven properties in four cities on the block - is
confident that the e-auction will attract more than the
normal buyers. Today in Sify Finance
The bank is confident of getting more than Rs 50 crore in all
for these properties, and hopes to complete the sale in the
next few months.
HSBC India will be the first in the group to conduct such a
sale, according to bank officials. The first to come for
auction in cyber space will be three flats in Mumbai's
upmarket Malabar Hill, each over 2,000 sq ft, followed by an
independent house in Chennai, a flat in Bangalore and two in
Kolkata.
HSBC opted for an e-auction rather than the traditional route
for the transparency that the bidding process offered and the
speed at which the deals can be completed.
"The e-auction process will be transparent, open and fair to
all bidders," said Simen Munter, Chief Operating Officer,
HSBC India. Each bidder can see the price another bidder has
quoted without knowing the identity of the bidder, he added.
The traditional method of selling - appointing a broker,
advertising for the properties and then waiting for the
highest offer - was time consuming and would result in a
number of non-serious buyers wanting to look at the property,
bank officials said.
In Chennai, the bungalow - Runnymede - is on an 11-ground
plot (about 26,400 sq ft) in the up market Boat Club area.
According to real estate industry sources, this property can
fetch up to Rs 2 crore a ground (2,400 sq ft).
For the e-auction, HSBC has appointed C.B. Richard Ellis, an
international real estate consultancy firm, as its adviser.
Prospective bidders have to pay a deposit of Rs 5 lakh to
participate in the auction. This will be adjusted against the
bid amount in the case of successful bidders, while it will
be refunded for others.
According to Malini Thadani, Senior Vice-President - External
Affairs, HSBC, the auction in Mumbai was to have been
completed last week, but has been postponed due to the rains.
The bank hoped to complete the sale next week.
The bank has put the properties on the block due to a change
in its accommodation policy for senior executives. The bank
has given them the option of choosing their own accommodation
or staying in apartments owned by the bank. The properties
that are being sold have been freed up because of this change
in policy, she said.
Munter said that the bank would fix a floor price for each of
these properties. It would advertise in newspapers for these
properties (this process has been completed in the case of
Mumbai) after which the real estate consultant would walk
prospective bidders through the process of the auction,
giving them a chance to view the properties.
Munter and Kapil Bedi, who is in charge of purchases at HSBC,
were confident that the e-auction route would attract more
bidders than the traditional selling process. For the Mumbai
properties, there were 43 bidders, including from overseas.
According to Munter, HSBC will use an e-trading platform
developed by A.T. Kearney, a consultancy, for the group
worldwide. The bank used this platform for its online
purchases and the Indian subsidiary was now using it for a
sale process. The high level of IT literacy among the bank's
target group was one of the reasons for HSBC to opt for the
e-auction route to sell the properties, he said.
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