Pakistan is aiming for a valuation of at least $1 billion for the Roosevelt Hotel it owns in New York City and is prepared to sell a minority stake in the landmark Manhattan property as it looks for a redevelopment partner, Reuters reported Thursday quoting an unnamed senior government official.
The Manhattan hotel is considered one of Pakistan’s most valuable overseas assets, acquired in 2000.
As part of its $7 billion IMF-supported privatization program, the Cabinet Committee on Privatization (CCOP) Tuesday approved the transaction structure for the Roosevelt Hotel, as proposed by the Privatization Commission Board.
Out of the three options evaluated by the Financial Advisor (i) outright sale, (ii) joint venture with multiple options, and (iii) long-term lease, the Joint Venture model with multiple options has been approved.
This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure.
The official said Pakistan plans to maintain an ownership interest through an equity partnership but declined to specify the size of the stake that could be offered to a prospective joint venture partner.
Real estate services firm JLL (Jones Lang LaSalle) will manage the process, with the government targeting a valuation exceeding $1 billion for the 42,000-square-foot property, which it envisions redeveloping for a mix of residential and office use.
The official estimated the redevelopment would take four to five years, noting that “interest level is extremely high.”
In June, the government announced it anticipates receiving $100 million in an initial payment from the joint venture arrangement by June 2026.
