Privatisation Commission approves transaction structure for Roosevelt Hotel sale or JV, scraps leasing option

The Privatisation Commission Board approved the proposed transaction structure for the long-pending divestment of the Roosevelt Hotel in New York, shifting its focus from leasing options to either an outright sale or a joint venture (JV), according to news reports.  

This decision marks a major step toward revitalising the iconic property in the heart of Manhattan, with the government aiming to modernise the historic site.

During the board meeting, chaired by Muhammad Ali, Adviser to the Prime Minister on Privatisation, the commission reviewed multiple structuring proposals submitted by the Financial Advisory Consortium, led by Jones Lang LaSalle Americas Inc. (JLL). 

The board finalised its recommendations, which will now be submitted to the Cabinet Committee on Privatisation (CCOP) for final approval.

JLL, appointed by the Privatisation Commission in February 2024, had originally presented three potential options for the Roosevelt Hotel: an outright sale, joint venture, or a 99-year lease. 

However, following Friday’s meeting, the leasing option was discarded, leaving the outright sale or joint venture as the primary paths forward.

In another decision, the board also scrapped the ongoing bidding process for selecting a financial adviser for the privatisation of Zarai Taraqiati Bank Limited (ZTBL), citing unreasonably high financial proposals. The Privatisation Commission will now re-advertise the advisory mandate to attract more competitive bids.

Additionally, the board approved the formation of a transaction committee for the private sector participation in three major power distribution companies: Faisalabad Electric Power Supply Company (Fesco), Gujranwala Electric Power Supply Company (Gepco), and Islamabad Electric Power Supply Company (Iesco).