The government is targeting a joint venture on the emblematic belonging to Pakistan International Airlines, the Roosevelt Hotel Building in Manhattan, New York, to obtain long -term financial advantages, the Minister of Defense Khawaja Asif said on Monday.
“Although the sale of 19-storey property can offer short-term gains or help repay a certain debt, a joint venture would preserve the assets and generate a sustained value,” he argued in questions in the National Assembly.
Asif pointed out that the privileged location of the hotel, with two entrances and the central positioning, made it a unique piece of real estate, which was unequaled in New York.
“Alternatively, the government also plans to completely sell the Roosevelt hotel,” said AIF.
In April, the board of directors of the privatization committee during its 233rd meeting discussed various transaction structure options developed by the financial advisor, a consortium led by Jones Lang La Salle Americas Inc (JLL) for the privatization of the Roosevelt hotel.
The Board of Directors also finalized its recommendations for the structure of transactions for the presentation to the Cabinet Committee on privatization (CCOP).
The options include the sale of the building as it is or to opt for a joint venture with a high -level developer, which has the potential to generate profits five times higher, according to a press release after the meeting.
The federal government last month officially invited the expressions of interest (EOIS) of potential investors for the privatization of the PIA of losses, marking a major development in its attempt to unload a controlling participation in the national carrier of the flag.
According to the privatization committee, the decision was made to sell between 51% and 100% of PIA shares, as well as management control, to the potential buyer. The interested parties have until June 3, 2025 to submit their EOI.
The national carrier last month said that he had published an annual profit for the first time in more than two decades, before a second government attempt to sell the airline.
Islamabad’s attempt to privatize the PIA last year flat when it received only one offer, well below the requested price of more than $ 300 million.
Pakistan had unloaded almost 80% of the debt inherited from the airline and had moved it to government books before the attempted privatization.
The rest of the debt has also been cleaned from the airline accounts after the failure of the sales attempt to make it more attractive for potential buyers, according to the country’s privatization ministry.