ISLAMABAD — The Government of Pakistan is targeting a $1 billion valuation for its iconic Roosevelt Hotel in New York and plans to enter a joint venture (JV) with a private redevelopment partner as part of its ongoing $7 billion IMF-backed privatization program.
To facilitate this process, global real estate advisory firm Jones Lang LaSalle (JLL) has been hired as the financial adviser and will charge $8 million (approx. Rs2.1 billion) for handling the valuation and investment process. Out of this amount, Rs1.84 billion has already been paid, according to senior government officials.
📌 Key Highlights:
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The Roosevelt Hotel, a historic 1,000+ room property in Manhattan, was acquired by Pakistan in 2000.
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The hotel was closed in 2020 due to mounting losses and has since served temporarily as a migrant shelter.
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The government is not opting for a full sale, but has approved a joint venture model to retain ownership while attracting private investment for redevelopment.
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The success fee to JLL will be 0.95% of the transaction value if the deal is completed.
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The total area under discussion is around 42,000 square feet in prime Manhattan, suitable for residential and commercial development.
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The redevelopment is expected to take 4–5 years.
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The government expects $100 million in initial JV payments by June 2026.
A senior official, speaking anonymously due to the confidential nature of the process, said:
“This is one of the most valuable pieces of Pakistani real estate abroad, and interest from potential partners is very high.”
While no details were shared on the size of the minority stake Pakistan is willing to offer, the official emphasized the government will retain equity ownership to ensure long-term value creation.
🧾 Controversy Over Fee
Despite the high expectations, the Rs2.1 billion fee being paid to JLL has raised eyebrows. When Adviser to the Prime Minister on Privatisation, Muhammad Ali, was asked to confirm the Rs1.84 billion payment already made, he did not respond.
🇵🇰 With mounting pressure to restructure public assets and meet IMF conditions, Pakistan sees the Roosevelt project as both a symbolic and strategic move — one that may pave the way for modern investment models for other state-owned properties abroad.
