Privatization Commission endorses joint venture for Roosevelt hotel deal

August 22, 2024 (MLN): The Privatization Commission Board has recommended a 'Joint Venture' as the most suitable transaction structure for the Roosevelt Hotel Corporation (RHC) in New York, in line with the transaction structure report submitted by Jones Lang LaSalle Americas, Inc (JLL), the Financial Advisor for the transaction.

The review took place during the 222nd meeting of the Privatization Commission Board, chaired by Federal Minister for Privatization, Board of Investment, and Communications Abdul Aleem Khan.

The consortium of Jones Lang LaSalle Americas, Inc (JLL) was appointed as the Financial Advisory Consortium (FAC) for Roosevelt Hotel transaction on November 28, 2023 and the Financial Services Agreement (FASA) was signed on February 02, 2024.

As part of its deliverables the FAC was required to submit a Transaction Structure Report suggesting alternate transaction structure options for the mixed use development of the Roosevelt Hotel.

The report considered and evaluated the options of outright sale, joint venture development and long term lease.

JLL based on the analysis presented in the Transaction Structure Report and its experience of New York Real Estate Market recommended “Joint Venture” as the most suitable Transaction Structure for maximizing the expected proceeds and value to the Government of Pakistan.

The Federal Minister appreciated the efforts of JLL on compilation of a detailed transaction structure report and expressed the hope that the Government will be able to get the best deal for the Roosevelt Hotel Transaction.

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