Earlier this week, the General Authority for State Properties presented draft amendments to the disposal of state real estate regulations on the “Consultation” platform, aiming to achieve optimal utilization of state real estate. The amendment defines the annual bid as the value of the annual rent stipulated in the contract for leasing or investing state real estate, and the Authority may, after the approval of the Governor, extend the lease contract in cases that require the extension of the contract for the tenant until the completion of the re-tendering and award procedures, provided that the total extension does not exceed one year.

The extension does not exceed 5 years.

Extension does not exceed 5 years

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The amendment included the addition of leasing properties whose deeds have been canceled to the person in possession of the property for a period not exceeding one year, which may be extended for another period or periods not exceeding a total of 5 years until the Council's decision on the final treatment of how to dispose of the property.

Preventing the withdrawn facility from entering auctions

Another anticipated amendment is the addition of «the withdrawn facility is prohibited from entering auctions for two years.»

Another anticipated amendment is the addition of "the withdrawn facility is prohibited from entering auctions for two years.

Conditions for accepting a single bid

One of the amended articles stipulates that if only one bid is submitted, or several bids are submitted and it turns out that they do not conform to the bidding documents, except for one bid, this bid may be accepted only if its prices are similar to the prevailing market prices and after the governor's approval.

25% final guarantee value

The awardee must provide a final guarantee of 25% of the annual bid value within 15 working days from the date of notification of the award, and the Authority may extend the period for a similar period, and if he fails to do so, the initial guarantee shall not be returned to him, and the next bid shall be negotiated with the next bid, and the percentage of the guarantee may be increased and the final guarantee is not required in contracts and partnerships that the Authority enters into with government agencies or companies in which the state owns more than (51%) of its capital.

14 days to retrieve bidding documents

. The amendments include that in the event that the auction is canceled, the bidders will be refunded the value of the bidding documents and initial guarantees within 14 days from the date of the cancellation decision.

Exclusion of temporary leases

Contracts for leasing state real estate for temporary purposes and contracts concluded for leasing state real estate to remedy an existing real estate investment situation are also excluded, provided that contracts for leasing or investing state real estate are corrected with amendments to achieve the public interest, in addition to contracts for the sale of real estate whose instruments have been canceled to their previous owners after the Assessment Committee estimates the value of the rent in the case of leasing, and the Investment Committee estimates the value of the rent and investment returns in the case of investment behavior.

After the Assessment Committee estimates the value of the rent in the case of leasing, and the value of the rent and investment returns in the case of investment behavior.