The Dhaka North City Corporation (DNCC) and Borak Real Estate Ltd have signed a deal, taking possession of their respective stakes in the DNCC Unique Complex [Hotel Sheraton] through mutual understanding, following a High Court order.
There is now no bar on Hotel Sheraton to be fully operational commercially. DNCC Mayor Md Atiqul Islam and Borak Real Estate Managing Director Mohd Noor Ali signed this deal on behalf of their respective organisations at the DNCC office on Monday [November 13].
According to the deal, the DNCC has taken possession of their stake in the property. Meanwhile, Borak Real Estate has also taken possession of its stake, allowing Hotel Sheraton to operate in full swing.
According to the court order, the DNCC and the Borak Real Estate Ltd resolved their ownership stakes in the Banani DCC-Unique Complex up to 20 stories or 201 feet through the agreement.
On October 9, in the presence of both parties, the court ordered a resolution of this matter. The order further mentions that the Civil Aviation Authority of Bangladesh approved up to 201 feet of the building’s height.
In this regard, the High Court issued status quo on the building on the 21st to 28th floors of the building. It then directed both parties to sign a deal sharing the building’s stake, following the orders previously issued on June 12 and August 29 this year.
The share allocation deal was signed as per court order. A high Court bench of justices Md Nazrul Islam and Khizir Hayat gave the order after a long hearing on October 9.
Borak Real Estate was represented at the court by senior lawyer and former justice ABM Altaf Hossain. He was accompanied by lawyers Md Abu Taleb, Sheikh Moshfeq Kabir, Abul Kashem and Enamul Haque Tuhin.
DNCC was represented by lawyer Imtiaz Moinul Islam Nilim, while lawyer Imam Hassan represented the Rajshahi Unnayan Kartripakkha (RAJUK). Deputy Attorney General Md Saifuddin Khaled represented the state.
It should be noted that there is no legal bar on the 28-storey height of this building, as there was no height limit for multi-storied buildings in the Banani area until 2009 due to Tejgaon Airport shutting down all flight operations.
The 28-storey Hotel Sheraton building was built before this timeframe, and completed in 2014.
So, this height limit should not apply to the building under any circumstances. Steps will be taken to allocate stakes of the building’s floors beyond 201 feet up to 28 stories after the matter is resolved in court.
Following the construction of the multistoried building, Borak Real Estate submitted a proposal to the DNCC on stake allocation of the property. Later, the DNCC Engineering Department tabled this proposal at a city corporation meeting.
As per the corporation meeting, Borak Real Estate proposal, and decisions taken at the DNCC second council’s 18th and 19th meetings held on November 27, 2022, and January 7, 2023, the DNCC will get 40 per cent of the building’s extended 15th to 28th floors, instead of 30 per cent.
Moreover, as per the design, the DNCC will get 30 per cent of the building up to the 14th floor, while Borak Real Estate will get 70 per cent. From the 15th to 28th floors, the DNCC will get 40 per cent, and Borak Real Estate will get 60 per cent.
On February 12, 2007, the Bangladesh University of Engineering and Technology (BUET) approved the building’s 30-storey structural design after vetting.
On June 25 of the same year, the then-authorised officer (chief engineer) of Dhaka City Corporation approved the 30-storey building’s design.
During this period, clearance was secured from different agencies (the city corporation, DMP, Fire Service and Civil Defence, Titas, Department of Environment, DESCO and Dhaka WASA).
After vetting from BUET, clearance from all required agencies as per regulations, and approval from the city corporation for the 30-storey building, the 28-storey Hotel Sheraton was built.
Later, on November 27, 2011, the then DNCC chief executive officer sent a letter to the local government secretary, informing him that the then mayor had approved the increase in the building’s floors from 15 to 30 stories.
The then mayor, Annisul Huq (late) had taken the initiative to resolve outstanding issues between both parties through discussion and informed Borak Real Estate on the matter in writing on May 31, 2015.
The deal signed on Monday finalises the distribution of stakes in Hotel Sheraton up to the 20th floor. Hotel Sheraton will now be fully operational, while the DNCC has taken possession of property worth nearly Tk 500 crore, and secured a huge stream of revenue.