By Staff Reporter
ISLAMABAD: Pakistan and the US have inked a memorandum of understanding to jointly pursue the redevelopment of New York’s historic Roosevelt Hotel, a move that could unlock significant value from one of Islamabad’s most prized overseas assets while bolstering bilateral economic relations.
The agreement, signed in Washington, establishes a framework for cooperation on the operation, maintenance, renovation and redevelopment of the century-old property in midtown Manhattan, according to a statement from Pakistan’s finance ministry on Thursday. The pact involves the US General Services Administration, an agency primarily tasked with managing federal properties and procurement, in evaluating the technical, commercial and economic aspects of the project. “This engagement was negotiated and stewarded by US Special Envoy Steve Witkoff under the leadership of President Donald J. Trump,” the ministry said in the statement.
Witkoff, a veteran New York real estate developer and longtime associate of Trump, has been instrumental in high-stakes international negotiations, including efforts to broker ceasefires in the Middle East and advance talks on Ukraine and Iran. The MoU was executed by GSA Administrator Edward C. Forst, a Florida-based executive with four decades in financial services and real estate including stints at Goldman Sachs & Co. and the US Treasury Department, and Pakistan’s Finance Minister Muhammad Aurangzeb, a former banker who led Habib Bank Ltd. before taking the finance portfolio in March 2024.
The signing was witnessed by Pakistani Prime Minister Shehbaz Sharif, who has held the top job since March 2024 after a previous term from 2022 to 2023, and Witkoff. The framework aims to provide a structured, time-bound process for assessing the deal’s parameters, reflecting both sides’ commitment to transparency and mutual benefit, the statement said. It highlighted the hotel’s prime location on Madison Avenue at 45th Street, steps from Grand Central Terminal, Times Square and Fifth Avenue — one of Manhattan’s most coveted commercial corridors.
The ministry noted the complexities of New York’s zoning and municipal approval processes, saying the institutional coordination would help mitigate execution risks, clarify regulations and maximize the transaction’s value. “Such facilitative frameworks are consistent with international practice in cross-border real estate and infrastructure projects,” the statement added. The objective is to secure the highest possible return for the property in line with Pakistan’s broader privatization strategy, while deepening economic ties with the US.
The GSA’s involvement raises questions about its authority, as the agency’s mandate typically focuses on federal assets and does not extend to commercial redevelopment of foreign-owned properties. It wasn’t immediately clear what legal basis the GSA is using to participate in the initiative. The Roosevelt, a 19-story Italian Renaissance Revival landmark designed by George B. Post & Son and opened in 1924, was named after former US President Theodore Roosevelt. It formed part of the Terminal City development around Grand Central and once hosted luminaries from politics, entertainment and business. Over the decades, it passed through owners including Hilton Hotels and Realty Hotels, a New York Central Railroad subsidiary.
Pakistan International Airlines, recently privatized the carrier, leased the 1,025-room hotel in 1979 from real estate investor Paul Milstein and acquired full ownership in 2000 for about $36.5 million after a legal dispute. The property, valued by some estimates at up to $1 billion in redevelopment scenarios, shuttered in 2020 amid mounting losses exacerbated by the Covid-19 pandemic. It briefly reopened as a migrant shelter from 2023 to 2025 under a $220 million, three-year lease with New York City, which was terminated last year amid shifting immigration policies.
Pakistan, grappling with fiscal pressures, has eyed the Roosevelt as part of a wider asset monetization push under an International Monetary Fund-backed program. Officials have signaled a preference for joint ventures over outright sales to preserve long-term upside in the asset. The deal comes amid efforts to strengthen US-Pakistan relations.
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