ISLAMABAD: The Privatisation Commission Board has recommended a joint venture as the preferred transaction structure for the Roosevelt Hotel in New York, owned by Pakistan International Airlines (PIA), following its meeting on Wednesday. This recommendation aligns with the Transaction Structure Report provided by the financial adviser, Jones Lang LaSalle Americas, Inc. (JLL).
JLL, appointed as the Financial Advisory Consortium (FAC) for the Roosevelt Hotel transaction in November last year, delivered a comprehensive report evaluating various options, including an outright sale, joint venture development, and long-term lease. JLL’s analysis and experience in the New York real estate market led to the conclusion that a joint venture would maximize the expected proceeds and value for the government of Pakistan.
Minister for Privatisation Abdul Aleem Khan, who chaired the meeting, praised JLL for its detailed report and expressed hope that the government would secure an optimal deal for the Roosevelt Hotel.
The board also approved several other key decisions related to the privatisation process, including the appointment of financial advisers for PIA, Discos, and the Roosevelt Hotel. Additionally, six firms were prequalified as financial advisers for the privatisation programme: Citigroup Global Markets Ltd (UK), J.P. Morgan, Alvarez and Marsal (UAE), EY Consulting LLC (Dubai), PWC-A.F. Ferguson and Company, and BDO Ebrahim and Company Pakistan.
Minister Aleem Khan expressed satisfaction with the board’s performance and emphasized the importance of transparency and sound decision-making in the privatisation process. He underscored the need to relieve the national exchequer from the burden of loss-making institutions and ensure that institutions meeting criteria and regulations are given opportunities in the privatisation process.
