The Privatization Commission on Thursday announced that Jones Lang LaSalle (JLL), a leading global real estate services firm, has formally conveyed its decision to resign as financial adviser for the privatization of the Roosevelt Hotel in New York City.
In its correspondence, JLL has cited the emergence of a potential conflict of interest for its decision. It has offered to return all amounts paid to it from the Privatization Commission during the course of its engagement. It has noted heightened interest in the Roosevelt Hotel from many of its own clients after New York City cancelled its lease agreement, noting this had prompted a need to withdraw from the assignment. JLL notes the situation places it in a compromising position, prompting the decision to resign to avoid any perceived or actual conflict of interest.
In January 2024, the Government of Pakistan appointed JLL, through a competitive process, to advise it on the potential transaction of the Roosevelt Hotel. Over the course of its engagement, JLL conducted due diligence on the property and submitted due diligence and transaction structure reports analyzing a range of transaction structure options in line with international best practices and market dynamics.
In its statement, the Privatization Commission said it is commencing the process for hiring a new financial adviser on fast track basis to ensure the privatization of the Roosevelt Hotel proceeds in a transparent and competitive manner while building on the preparatory work already completed.
The Commission has stressed that both it and the Government of Pakistan remain fully committed to expeditiously conclude the ongoing privatization of Roosevelt Hotel in accordance with all applicable legal requirements.