NEW YORK | 45 East 45th St (Roosevelt Hotel) | FT | FLOORS

[NYguy]

https://pid.gov.pk/site/press_detail/26210

PR No. 205
TRANSPARENCY TO BE ENSURED IN PRIVATIZATION: ABDUL ALEEM KHAN
222nd MEETING OF PRIVATIZATION COMMISSION BOARD HEADED BY FED. MINISTER
PIA ROOSEVELT HOTEL


August 21, 2024

In the 222nd meeting of Privatization Commission Board chaired by Federal Minister for Privatization, Board of Investment and Communications Abdul Aleem Khan in which important decisions regarding the ongoing process of privatization of various Government Institutions and financial & technical aspects were approved. In the Board meeting, decisions on appointment of Financial Advisors for PIA, DISCOs, Roosevelt Hotel in New York and other decisions were unanimously approved by PCB, as well.

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.

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 maximizing 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.

https://propakistani.pk/2024/08/21/p...aft-grounding/

Aug 21, 2024

According to the Ministry of Privatization, authorities aim to sell ten entities including power distribution companies within a year. It is also seeking initial bids for PIA’s Roosevelt Hotel in New York.

[streetscaper]

Originally Posted by NYguy

You can think that it should be.

Thank you! All that needs to be said.

[NYguy]

https://pid.gov.pk/site/press_detail/26234

CLARIFICATION
222nd MEETING OF PRIVATIZATION COMMISSION BOARD


August 23, 2024

Apropos to the earlier press release of the Commission dated 21st August, 2024, it is informed that the earlier press release contained some miscommunication, which requires clarification. The PC Board did neither approve appointment of any Financial Advisor nor took any decision on the presentation made by the Financial Advisor on Roosevelt Hotel. The meeting of the PC Board was held on 20th August, 2024.

As per agenda of the meeting, the PC Board considered the proposal for prequalification of panel of Financial Advisors for the privatisation programme. The Selection Committee presented their recommendations for consideration by the Board. The decision, in this behalf, will be announced after confirmation of the same by the Board in its next meeting, scheduled to be held in a week’s time.

Further, the Financial Advisor for the divestment of Roosevelt Hotel, M/s Jones Lang LaSalle Inc (JLL), presented a Transaction Structure Report to the Board, suggesting various options for the Roosevelt transaction and responded to the queries by the Board members. The Board held an in-depth discussion on the proposed options and directed PC to carry out additional analysis on the proposed options and present the same to the Board in its next meeting, scheduled to be held in a week.

[NYguy]

By the end of the week, we should have some idea of the route to partnership with a developer they intend to take.


https://www.thenews.com.pk/print/122...gence-to-oct-1

...the government has appointed Jones Lang Lasalle Americas Inc. (JLL), a Chicago-based real estate management firm, as the financial adviser to explore transaction options, ranging from a long-term lease to an outright sale or joint venture. JLL’s findings will be reviewed by the CCoP on August 28, 2024, before the government proceeds with calling for expressions of interest (EoIs) from investors.

[Ahoi]

If Peebles has the money together, then I hope that he will also propose his Affirmation Tower here.

[Sky88]

Originally Posted by Ahoi

If Peebles has the money together, then I hope that he will also propose his Affirmation Tower here.

Sorry, but if you are so convinced of this idea of ​​yours, why don't you send an email to Peebles, explaining your project. Who knows, maybe he will find it interesting.

[Ahoi]

Sky88, I don't care what happens here. I just see a potential site here in a prime location (Grand Central Zone) and a man who has always said I'll build my tower somewhere else. A plot of land and a striking project at that.

As I am not an architect, I cannot present/suggest a project here.

[NYguy]

Originally Posted by Ahoi

If Peebles has the money together, then I hope that he will also propose his Affirmation Tower here.

Apples and oranges.




https://tribune.com.pk/story/2491595...hotel-proposed

Joint venture for Roosevelt Hotel proposed


Shahbaz Rana
August 28, 2024

According to its Transaction Structure report, Pakistan will not have to pay any additional money for the joint venture purposes and its contribution will be in the shape of the value of the land of the hotel.

"Based on pre-marketing, due diligence and analysis of the options, the joint venture structure nets the highest value to the government of Pakistan", the financial adviser has recommended in the Roosevelt Hotel Transaction Structure report.

The report details the pros and cons of the three options – outright sale, joint venture deal and the 99-year lease. The government told the Privatisation Commission (PC) board last week that the report gave the least preference to the outright sale and put its weight behind the joint-venture deal.

"The financial adviser, based on the analysis presented in the transaction structure report and its experience of the New York real estate market, has recommended joint venture as the most suitable transaction structure for maximising the expected proceeds", the PC board was informed.

The information emerged a day before the PC board is scheduled to take up the transaction structure for a second time this week. The board meets on Wednesday (today) amid the government's desire to sell the most sought-after property in the heart of New York under a government-to-government deal.

In the last board meeting, Privatisation Minister Abdul Aleem Khan, also the chairman of the PC board, as well as another official hinted at selling the hotel under a negotiated government-to-government deal, sources said.

In case of the negotiated deal with any Gulf country, according to the sources, the government would not be required to give advertisement in the press and it might not enter into a joint venture.

The finance adviser has presented three options: 100% sale of the Roosevelt Hotel land, joint venture with prospective development partner for future development of multi-storey mixed use skyscraper or giving the hotel at 99-year ground lease with identified developer and investor for future development of mixed use skyscraper.

The financial adviser stated that the joint venture agreement could be structured in a way to allow the government to exit at any stage after the zoning of land use approvals are in place. The government would contribute to the land and the development partner will contribute all remaining costs, including payments to the government and assuming all the risks of the development, according to the proposals.

100% sale

Under scenario 1, which is not recommended by the adviser, the land valuation will be determined now assuming the full land potential but the transaction will be closed in 2027. The buyer will deposit the initial price and will give the remaining amount in 2027 after securing approvals for the high-rise building. "This option has the lowest risk with lowest net proceeds to the government of Pakistan", says the report.

Joint Venture

The financial adviser said that under the joint venture scenario, the government would contribute 100% of the land value to the joint venture partner and the land value will be determined on the basis of full land potential, including the 32-storey building. Both parties will sign the contribution agreement immediately but the joint venture agreement will be signed in 2027.

The development partner will make two initial deposits in this fiscal year and then in 2027 and the balance sale price will be paid in 2033. "This option has the highest risk with the highest net proceeds to Pakistan," said the adviser.

99-year lease deal

Under this model, the land value will be determined now by assuming the full potential of the property. In this scenario, Pakistan will sign the contribution agreement and the ground lease agreement in 2027. Pakistan will get fixed payments over the period of next 99 years. The government will retain the ownership of the land and the time to achieve the sale proceeds is the highest.

In order to maximise the gains, there will be a need for a strong development partner for planning and design, negotiations with the unions and the LandMark Commission, zoning approvals related to additional air rights, negotiations and acquisitions, according to the adviser.

The financial adviser has recommended the selection of a strong development partner, having a strong balance sheet, strong market reputation and experience in managing complex zoning permissions.

[NYguy]

In the last board meeting, Privatisation Minister Abdul Aleem Khan, also the chairman of the PC board, as well as another official hinted at selling the hotel under a negotiated government-to-government deal, sources said.

In case of the negotiated deal with any Gulf country, according to the sources, the government would not be required to give advertisement in the press and it might not enter into a joint venture.

So, it seems its not just the developers in the US who have their eyes on the prize. That seems to be the holdup here...


https://tribune.com.pk/story/2492159...elt-sale-model

No decision on Roosevelt sale model
PC board discusses giving hotel on lease or developing it as joint venture

August 30, 2024

There was also no consensus whether to privatise the hotel through a competitive bidding process or through a government-to-government deal. Roosevelt Hotel is located in the heart of New York and part of the 1% most sought-after land of the metropolitan city. Federal Minister for Privatisation Abdul Aleem Khan presided over the meeting of PC board. It was for the second time in 10 days when the board met but could not approve a transaction model for final endorsement by the Cabinet Committee on Privatisation.

"Federal Minister Abdul Aleem Khan observed that in light of the recommendations of the Privatisation Commission board, final decision will be taken by the Cabinet Committee on Privatisation," said a statement issued by the Ministry of Privatisation.

A majority of the board members were of the view that the government should enter into a 99-year lease agreement. Some others, including the privatisation minister, emphasised that the hotel should be developed as a joint venture and a government-to-government deal should be struck.

Proponents of the lease agreement were of the view that Pakistan needed money and that was possible by entering into a lease agreement, which would be a constant source of earning without selling land. Under the lease model, the land value will be determined now by assuming the full potential of the property. In this scenario, Pakistan will sign a contribution agreement and a ground lease agreement in 2027.

However, some members were of the view that the hotel should be developed under a joint venture but through a negotiated government-to-government deal.

Surprisingly though, the financial adviser told the board that there were chances of cartelisation in the case of open bidding.

The adviser said that under the joint venture scenario, the government would contribute 100% of the land value to the joint venture partner and the land value would be determined on the basis of full land potential, including the 32-storey building. Both parties will sign a contribution agreement immediately but the joint venture agreement will be signed in 2027.

.....some members argued that the joint venture would take time and Pakistan needed funds to pay off some of the PIA liabilities parked in a holding company. Roosevelt Hotel is the property of PIA.

The adviser recommended the selection of a strong development partner, having a strong balance sheet, strong market reputation and experience in managing complex zoning permissions.

[fadedgrandeur]

Originally Posted by Crawford

Landmarks already rejected this multiple times, so there's no issue.

Some people just want to preserve every single older building. There were people whining about 270 Park's demolition, saying it had to be landmarked. Pretty much any older building in Midtown has something interesting in its past, or something interesting architecturally, so using that logic, nothing should ever be built, anywhere.

I guess the ESB should have never been built, since it replaced the original Waldorf Astoria (which, unlike this dump, was actually really ornate and nice). Or Rockefeller Center should have never been built, since it replaced really nice brownstone blocks and Columbia University's original campus.

Can you actually cite the rejected LPC rulings? I am almost sure the LPC has never made a ruling on this particular building either way.

[NYguy]

Originally Posted by fadedgrandeur

Can you actually cite the rejected LPC rulings? I am almost sure the LPC has never made a ruling on this particular building either way.

It's come up multiple times, and the LPC has declined the request.

[NYguy]

This hotel should stand at least for the next few years. But get a good look at it now.


SEPTEMBER 2, 2024

[fadedgrandeur]

Originally Posted by NYguy

It's come up multiple times, and the LPC has declined the request.

Sure, you can just say that, but I was asking specifically for a source.

[Crawford]

Originally Posted by fadedgrandeur

Sure, you can just say that, but I was asking specifically for a source.

LPC's decisions are all public and available online.

When this neighborhood was rezoned, about 10 years ago, LPC made a comprehensive survey of every property, determining which had any potential for landmarks review. This address was not included, so it's (very thankfully) a goner. It's an old, dumpy hotel.

[NYguy]

Originally Posted by fadedgrandeur

Sure, you can just say that, but I was asking specifically for a source.

If you've read this thread, you've seen it come up. Or you can just look it up. Or you could follow the LPC. Or you could learn how they determine such things. Either way, stop wasting my time.