PIA, Discos, Roosevelt Hotel: PC Board gives approval to appointment of FAs

ISLAMABAD: Privatisation Commission Board on Wednesday gave unanimous approval for appointment of financial advisors for PIA, Discos, and Roosevelt Hotel in New York.

The 222nd meeting of the Board was chaired by Federal Minister for Privatisation, Board of Investment and Communications Abdul Aleem Khan.

Important decisions were taken regarding the ongoing process of privatisation of various government institutions and financial and technical aspects were approved.

‘Privatisation of loss-making institutions to lessen burden on the national exchequer’

The board approved the selection of six companies/ firms as pre-qualified financial advisors for the privatisation programme.

The PC Board was also presented with the Transaction Structure Report on the Roosevelt Hotel Corporation (RHC), New York by Jones Lang LaSalle Americas, Inc (JLL), the financial advisor for the transaction.

The board recommended “Joint Venture” as the best suited transaction structure for the Roosevelt Hotel in line with the Transaction Structure Report submitted by JLL.

The six companies/ firms approved for the panel of pre-qualified financial advisors include Citigroup Global Markets Ltd, UK, JP Morgan, Alvarez & Marsal, UAE, EY Consulting LLC Dubai, PWC-AF Ferguson & Co and BDO Ebrahim & Co, Pakistan. These prequalification of financial advisors will enable the Privatization Commission to timely engage Financial Advisors for various upcoming privatization transactions.

The consortium of Jones Lang LaSalle Americas, Inc (JLL) was appointed as the Financial Advisory Consortium (FAC) for Roosevelt Hotel transaction on 28th November, 2023 and the Financial Services Agreement (FASA) was signed on 2nd February, 2024. As part of its deliverables the FAC was required to submit a Transaction Structure Report suggesting alternate transaction structure options for the mixed use development of the Roosevelt Hotel.

The report considered and evaluated the options of outright sale, joint venture development and long term lease. JLL based on the analysis presented in the Transaction Structure Report and its experience of New York Real Estate Market recommended “Joint Venture” as the most suitable Transaction Structure for maximising the expected proceeds and value to the Government of Pakistan.

The federal minister appreciated the efforts of JLL on compilation of a detailed transaction structure report and expressed the hope that the Government will be able to get the best deal for the Roosevelt Hotel Transaction.

Copyright Business Recorder, 2024