ISLAMABAD - The cabinet committee on Privatization (CCoP) on Thursday has decided to redevelop the site of Roosevelt Hotel (Manhattan, New York) into a mixed use (Joint Venture) of primary office tower over retail and condominium.

The CCoP decided not to privatise New York’s Roosevelt Hotel owned by Pakistan international Airlines (PIA). Adviser to the Prime Minister on Finance and Revenue chaired the meeting of the Cabinet Committee on Privatization at the Cabinet Division. CCoP reviewed one point agenda on the privatisation of Roosevelt Hotel (Manhattan, New York) an asset owned by PIA-Investment Limited.

As requested by the Aviation Division, CCoP decided to de-notify the Roosevelt Task Force formed earlier under the chairmanship of Minister for Privatization for framing Terms of Reference for leasing the Roosevelt’s site for setting up a joint venture project. The CCoP also directed PC to hire a Financial Adviser to start the process for the transaction in the light of the report of Ms Deloitte from July 2019 which recommended “that the highest and best use of the Roosevelt Hotel Property is to redevelop the site into a mixed use (through Joint Venture) of primarily office tower over retail and condominium”.  It was also directed that Ms Deloitte would update its study on the Hotel transaction in the next 4 weeks and the same shall be shared with the CCoP.

During last year, the cabinet committee had constituted a task force to finalise terms of reference for leasing out the Roosevelt Hotel. Subsequently, in December 2019, the Privatisation Commission board approved terms of references, which were to be sent to the cabinet committee for final approval. During March this year, the Aviation Minister Ghulam Sarwar Khan had informed the National Assembly Standing Committee on Privatisation that the government was planning to give out the Roosevelt Hotel on a long term lease. However, the CCoP yesterday decided neither to privatise nor giving Roosevelt Hotel n lease.