The Cabinet Committee on Privatisation (CCOP) has approved the transaction structure for the PIA-owned Roosevelt Hotel, New York, as proposed by the Privatisation Commission.
The approval was given on Tuesday during the 237th meeting of the Privatisation Commission board, held under the chairmanship of Muhammad Ali, Adviser to the Prime Minister on Privatisation.
After evaluating three options – outright sale, joint venture with multiple options, and long-term lease – the Cabinet Committee on Privatisation chose the joint venture model as suggested by the financial advisor Jones Lang LaSalle Americas, Inc (JLL).
This model is expected to maximise long-term value for Pakistan, offering flexibility, multiple exit opportunities, and minimising future fiscal exposure.
The Roosevelt Hotel, closed in 2020 due to COVID-related losses, was temporarily leased to the City of New York in 2023 to house asylum seekers, generating around $220 million in projected rental income. That lease expired in 2024.
During the meeting, the board also approved the prequalification of four interested parties for the divestment of Pakistan International Airlines Corporation Limited (PIACL).
The prequalification process was based on a thorough evaluation of Statements of Qualification (SOQs) submitted by prospective investors, focusing on technical, financial, and documentary requirements outlined in the Request for Statement of Qualification (RSOQ).
Following detailed scrutiny, four interested parties were prequalified, including a consortium of Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited; a consortium of Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited; Fauji Fertilizer Company Limited; and Air Blue (Private) Limited.
These prequalified parties will now proceed to the buy-side due diligence phase, an essential step in the transparent and competitive privatisation process of PIACL.
