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ISLAMABAD: Jones Lang LaSalle (JLL), the global real estate services firm, has resigned from its role as Financial Advisor for the privatization of the iconic Roosevelt Hotel in New York. The decision, formally conveyed to the Privatisation Commission of Pakistan, stems from a potential conflict of interest, as stated by JLL, said an official statement of Privatization Commission on Thursday.
Appointed in January 2024 after a competitive bidding process, JLL was tasked with advising the Government of Pakistan on the potential transaction of the Roosevelt Hotel. During their engagement, JLL completed due diligence on the property and submitted comprehensive reports outlining various transaction structure options, aligned with international best practices and prevailing market dynamics.
JLL cited a significant increase in interest in the Roosevelt Hotel from its own clients following the cancellation of the hotel’s lease agreement with New York City. This heightened interest, according to JLL, placed them in a compromising position, leading to their decision to withdraw from the assignment to prevent any perceived or actual conflict of interest. As a gesture of good faith, JLL has offered to return all fees received from the Privatisation Commission during their engagement.
In response to this development, the Privatisation Commission has announced it will expedite the process of hiring a new Financial Advisor. This swift action aims to ensure the privatization of the Roosevelt Hotel proceeds transparently and competitively, building upon the preparatory work already completed.
The Government of Pakistan and the Privatisation Commission reiterate their full commitment to concluding the Roosevelt Hotel’s privatization expeditiously, in strict adherence to all applicable legal requirements.
