Senior govt official says Islamabad will retain ownership in the project through equity partnership
\n NEW YORK
\nPakistan is seeking a valuation of at least $1 billion for the Roosevelt Hotel it owns in New York and is ready to part with a minority stake in the prime Manhattan property as it scouts for a redevelopment partner, a senior government official said. Named after former US president Theodore Roosevelt, the century-old property in midtown Manhattan is seen as one of Pakistan\u2019s most valuable foreign assets, which it acquired in 2000.
\nFaced with mounting losses, the over 1,000 room hotel was shut in 2020, and has also operated briefly as a migrant shelter. As part of the government\u2019s $7 billion IMF-backed privatisation push, Pakistan\u2019s government approved a \u201ctransaction structure for the Roosevelt Hotel\u201d on Tuesday , saying it won\u2019t do an outright sale but has decided to adopt a joint venture model to maximise long-term value. It gave no further details.
\nThe senior Pakistani official said the government will retain ownership in the project through an equity partnership, but declined to disclose the size of the stake being offered to any potential JV partner. The official declined to be named since the process is confidential. JLL, or Jones Lang LaSalle, will run the process and the government is eyeing a valuation of over $1 billion for the 42,000 square feet property it hopes could be redeveloped for residential-cum-office use, the official said.
\n\u201cIt is among the best pieces of land in NY real estate… The process begins immediately and is expected to be completed in the next six-nine months,\u201d said the official. Pakistan\u2019s Privatisation Ministry and state-owned Pakistan International Airlines (PIA), which owns the hotel through its investment arm, did not respond to request for comments, and neither did JLL.
\nPakistan this week also approved four parties to bid for a stake in debt-ridden PIA. The hotel is located near marquee New York destinations such as Grand Central Terminal, Times Square, and Fifth Avenue, placing it in one of Manhattan\u2019s most valuable commercial zones.
\nPakistan\u2019s government is estimating the redevelopment will take 4\u20135 years, the official said, adding the \u201cinterest level is extremely high.\u201d In June, the government said it expects $100 million in the initial payment from the joint-venture partnership by June 2026. <\/p>\n","protected":false},"excerpt":{"rendered":"
Senior govt official says Islamabad will retain ownership in the project through equity partnership NEW YORK Pakistan is seeking a valuation of at least $1 billion for the Roosevelt Hotel it owns in New York and is ready to part with a minority stake in the prime Manhattan property as it scouts for a redevelopment […]<\/p>\n","protected":false},"author":2,"featured_media":489561,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-489535","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n