Financial institutions such as Citigroup and CBRE are reportedly in contention to offer advice for the redevelopment of the Roosevelt Hotel in Pakistan.
The Privatisation Commission of Pakistan has received bids from seven international consortia to act as financial advisers on the future of its Roosevelt Hotel property in New York. The Roosevelt Hotel, a prestigious establishment located in Midtown East on Madison Avenue and East 45th Street, Manhattan, New York City-USA, spans approximately 600,000 square feet and comprises 19 storeys and 1,025 rooms.
The hotel is currently owned by PIA Investments Ltd (PIAIL), a wholly owned subsidiary of Pakistan International Airlines Corporation Limited (PIACL). The Privatisation Commission has been mandated to appoint a financial adviser for the leasing of the Roosevelt site for a joint venture project for prospective mixed-use development.
One of the bidding consortia is led by Citigroup, with Cushman & Wakefield and Proskauer Rose as partners. Another contender is a group that includes Bank of Punjab. The Privatisation Commission has not announced any new bidders for the role of financial adviser for the Roosevelt Hotel project at this time.
Jones Lang LaSalle (JLL), a leading global real estate services firm, previously held the contract for the financial advisory engagement regarding the Roosevelt Hotel. However, JLL resigned from its role due to a potential conflict of interest. In its correspondence, JLL offered to return all amounts received from the Privatisation Commission during the course of its engagement.
The Privatisation Commission did not provide any information about the reason for JLL's resignation or the process for appointing a new financial adviser in the statement on its website. The commission has also not specified a timeline for the appointment of a new financial adviser.
The Privatisation Commission will complete the technical evaluation of the bids in 10 days. The Roosevelt Hotel has been at the centre of privatisation debates in Pakistan for a long time, with successive governments considering various options for its future amid fluctuating real estate market dynamics in New York City.
As of the time of the statement on the Privatisation Commission's website, no financial adviser has been appointed for the Roosevelt Hotel project. The company currently awarded the contract for the financial advisory engagement is Alvarez & Marsal. The Roosevelt Hotel is among the elite hotels in Manhattan, making the project a significant opportunity for the appointed financial adviser.
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