By Staff Reporter
ISLAMABAD: Jones Lang LaSalle Inc., the global real estate advisory firm tasked with guiding the privatisation of New York’s Roosevelt Hotel, has stepped down from its role, citing a potential conflict of interest, Pakistan’s Privatisation Commission said on Thursday.
JLL, appointed in January 2024 through a competitive process, was responsible for conducting due diligence and preparing transaction structure reports for the hotel’s privatisation. In a formal communication to the government, the firm conveyed its decision to resign and offered to return all fees received during its engagement. The company pointed to growing interest in the Roosevelt Hotel from its own clients, sparked by the recent termination of the property’s lease agreement with New York City, as the reason for its withdrawal.
“JLL has cited heightened interest in Roosevelt Hotel from many of its own clients… [which] has put them in a compromising position,” the Privatisation Commission said in a statement. The commission noted that JLL stepped back “to avoid any perceived or actual conflict of interest,” underscoring the firm’s effort to maintain ethical boundaries amid shifting dynamics around the high-profile asset.
The Roosevelt Hotel, named after former US President Theodore Roosevelt, is a century-old property in midtown Manhattan, widely regarded as one of Pakistan’s most valuable foreign holdings since its acquisition in 2000. The over 1,000-room hotel, however, has struggled financially, leading to its closure in 2020 amid mounting losses. It briefly served as a migrant shelter before shutting its doors entirely.
The hotel has been a focal point of privatisation debates in Pakistan for years, with successive governments weighing its future against the backdrop of New York City’s volatile real estate market. The property, owned by Pakistan International Airlines Investment Limited, has drawn attention both for its historic significance and its strategic location.
The hotel’s location, near marquee New York landmarks like Grand Central Terminal, Times Square, and Fifth Avenue, places it in one of Manhattan’s most sought-after commercial zones, adding to its appeal for potential partners.
In response to JLL’s exit, the Privatisation Commission moved swiftly, announcing it has begun the process of hiring a new financial advisor on a fast-track basis to keep the transaction on course. The commission stressed that the incoming advisor will leverage the preparatory work already completed by JLL, ensuring no significant delays. “The privatisation process will continue in a transparent and competitive manner,” it said, signaling its intent to maintain momentum.
The Pakistani government reiterated its resolve to wrap up the privatisation expeditiously, adhering to all legal and regulatory requirements. The government is targeting a valuation of at least $1 billion for the Roosevelt Hotel and is prepared to sell a minority stake in the prime Manhattan property as it searches for a redevelopment partner.
The move is part of a broader $7 billion IMF-backed privatization effort as the cash-strapped nation looks to unlock value from its overseas assets.
The government plans to retain ownership through an equity partnership, though it has not specified the size of the stake it’s willing to offer. “It is among the best pieces of land in NY real estate,” the official said. “The process begins immediately and is expected to be completed in the next six-nine months.”
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