ISLAMABAD: Pakistan is seeking a $1 billion valuation for the Roosevelt Hotel in Manhattan and is open to selling a minority stake to a redevelopment partner as part of its $7 billion IMF-backed privatization drive. The government has approved a joint venture model for the hotel’s development, aiming to maximize long-term value.
Meanwhile, global real estate services company Jones Lang LaSalle (JLL) will charge $8 million (Rs2.1 billion) from the government for valuation and investment process of Roosevelt Hotel, a senior official told The News.
Named after former US president Theodore Roosevelt, the century-old property in midtown Manhattan is seen as one of Pakistan’s most valuable foreign assets, which it acquired in 2000. Faced with mounting losses, the over 1,000 room hotel was shut in 2020, and has also operated briefly as a migrant shelter.
The JLL, being the financial adviser, will also be paid a success fee -- 0.95 percent of the total value if the transaction of Roosevelt Hotel is successfully closed. However, out of Rs2.1 billion, it has been paid Rs1.84 billion. When Adviser to PM on Privatisation Muhammad Ali was asked to confirm if Rs1.84 billion was paid to the financial adviser, he did not respond.
Pakistan is seeking a valuation of at least $1 billion for the Roosevelt Hotel and is ready to part with a minority stake in the prime Manhattan property as it scouts for a redevelopment partner, another senior government official said. As part of the government’s $7 billion IMF-backed privatisation push, Pakistan’s government approved a “transaction structure for the Roosevelt Hotel” on Tuesday, saying it won’t do an outright sale but has decided to adopt a joint venture model to maximise long-term value. It gave no further details.
The 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. The JLL 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. “It 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,” said the official.
Pakistan’s government is estimating the redevelopment will take 4-5 years, the official said, adding the “interest level is extremely high.” In June, the government said it expects $100 million in the initial payment from the joint-venture partnership by June 2026.
