ISLAMABAD: The Privatisation Commission’s board has recommended a joint venture for the Roosevelt Hotel. It is the property of Pakistan International Airlines (PIA) in New York.
This recommendation is part of the Transaction Structure Report submitted by the financial adviser for the transaction, Jones Lang LaSalle Americas, Inc. (JLL), to the Privatisation Commission.
The PC appointed the consortium of Jones Lang LaSalle Americas, Inc. as the Financial Advisory Consortium (FAC) for the Roosevelt Hotel transaction in November 2023.
Therefore, the FAC was tasked with submitting a Transaction Structure Report, suggesting alternative transaction structure options for the mixed-use development of the Roosevelt Hotel. The report considered and evaluated options, including outright sale, joint venture development, and long-term lease.
Based on its analysis and experience in the New York real estate market, JLL recommended the joint venture as the most suitable transaction structure to maximise the expected proceeds and value for the government of Pakistan.
Minister for Privatisation Abdul Aleem Khan, who chaired the board meeting, commended JLL for compiling a comprehensive transaction structure report and hoped that the government would secure the best deal for the Roosevelt Hotel transaction.
A Privatisation Commission press release issued after the meeting detailed several significant decisions concerning the ongoing privatisation process of various government institutions.
The board unanimously approved financial and technical aspects, including the appointment of financial advisers for PIA, Discos, and the Roosevelt Hotel, among others.
The board also approved the selection of six firms as prequalified financial advisers for the privatisation programme. These firms include Citigroup Global Markets Ltd of the UK, J.P. Morgan, Alvarez and Marsal of UAE, EY Consulting LLC of Dubai, PWC-A.F. Ferguson and Company, and BDO Ebrahim and Company Pakistan. This prequalification will enable the Privatisation Commission to engage financial advisers promptly for upcoming transactions.
Minister Aleem Khan expressed his satisfaction with the performance of the Privatisation Commission Board, noting that the inclusion of “world-class” financial advisers is a positive step forward.
He emphasised the need to relieve the national exchequer from the burden of loss-making institutions through privatisation, stressing the importance of transparency in this sector.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
