KARACHI: Citigroup is among seven international consortia that have submitted bids to advise Pakistan on the privatization of the Roosevelt Hotel in New York, a privatization commission official with direct knowledge of the issue told Arab News on Thursday.
The Roosevelt Hotel, a century-old Manhattan property owned by Pakistan International Airlines through its investment arm, is considered one of Pakistan’s most valuable foreign assets.
Islamabad is pursuing a joint venture model rather than an outright sale, seeking a redevelopment partner to maximize long-term value as part of a broader privatization drive agreed under its $7 billion IMF program.
“The technical bids of seven consortia have been opened on Sept. 16,” the official, who declined to be named, said. “The legally successful bidder has to be announced within 30 days after the opening of the bids as per PPRA rules.”
The PPRA, or Public Procurement Regulatory Authority, sets Pakistan’s procurement regulations. Under these rules, the Privatization Commission is required to complete the evaluation process within a fixed timeframe to ensure transparency and accountability in government contracting.
According to the official, the following seven consortia have submitted proposals:
Greysteel, B6 Real Estate Advisers and Kirkland & Ellis LLP
CBRE, Morgan Stanley, Paul Hastings and Goldman Harris LLC
Ankura, Bank of Punjab, Baker McKenzie and Orr, Dignam & Co.
Savills, MACRO (a Savills Company), Cirtin Cooperman & Company LLP, Hogan Lovells, and Mohsin Tayebaly & Co.
Alvarez & Marsal Private Equity Performance Improvement Group LLC, Proskauer, and FGE Ebrahim Hosain (FGE-EH)
Citi Bank, Cushman & Wakefield, Proskauer Rose LLC, and HaiderMota & Co.
Newmark, Herbert Smith Freehills Kramer (US) LLP, and Peregrinvest LLC
Pakistan says it expects the privatization of the Roosevelt Hotel to be completed this year. The property, located near Grand Central Terminal, Times Square and Fifth Avenue, was closed in 2020 due to heavy losses but has since been used intermittently, including as a temporary migrant shelter.
Last month, global real estate firm Jones Lang LaSalle (JLL) resigned as financial adviser for the hotel’s partial sale, citing a conflict of interest due to client involvement. The government has since accelerated efforts to appoint a new adviser and proceed with the joint venture model approved by the federal cabinet.
Economists say the privatization of the Roosevelt Hotel is a critical part of Pakistan’s broader effort to offload loss-making state assets while attracting foreign investment and easing pressure on its fragile $350 billion economy.
