Pakistan picks US firm for privatisation of Roosevelt Hotel

ISLAMABAD: The Privatisation Commission (PC) Board has approved the hiring of a US-based consortium as the financial adviser for the privatisation of the Roosevelt Hotel, a multi-million dollar property owned by Pakistan International Airlines (PIA) in New York.

The PC Board, chaired by Federal Minister for Privatisation Fawad Hasan Fawad, selected Jones Lang LaSaalle Americas Inc (JLL) as the top bidder for the role of financial advisor, after evaluating four proposals that were submitted in response to an advertisement on September 8, 2023.

The board also formed a negotiating committee to finalise the financial services agreement with JLL, which will oversee the transaction process for the sale of the Roosevelt Hotel.

The Roosevelt Hotel, located in Manhattan, was acquired by PIA in 1979 and has been operating under a joint venture with a Saudi prince since 1999. The hotel has been facing financial losses for several years and has been on the privatisation list since 2005.

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The PC Board also discussed other matters related to the privatisation programme, including the delisting of two power plants, the establishment of a transaction committee for the divestment of PIA’s assets, and the resolution of post-privatisation issues of a fertiliser company.

The board recommended the removal of the Nandipur Power Plant (NPP) and the Guddu Power Plant (GPP) from the privatisation list, following the recommendation of the Cabinet Committee on Privatisation. The board noted that the two power plants had been facing longstanding issues for over five years and directed the PC to pursue speedy disposal of the pending cases in various courts.

The board also approved the formation of a transaction committee, headed by the PC secretary, to oversee the implementation of the financial services agreement that was recently concluded with Ernest & Young LLC, a Dubai-led consortium, for the divestment of PIA’s assets. The board instructed the PC to hire an expert lawyer to deal with the issues and litigation related to the Pak-China Fertilizers Limited, a company that was privatised in 2006.