Malkin gets 94 percent of investor votes needed for $1B Empire State Building IPO

By Hiten Samtani | April 03, 2013 10:00AM

Updated, 11:17 a.m., April 3: Malkin Holdings is within striking distance of its proposed $1 billion initial public offering for the iconic Empire State Building, having secured 94 percent of the votes needed for approval, according to a letter sent to investors seen by The Real Deal

The controversial IPO plan consists of 18 properties, out of which three entities — the Empire State Building, 250 West 57th Street and 60 East 42nd Street — are subject to an investor vote. Citing its latest Securities and Exchange Commission filing, Malkin told investors on April 2 that based on the nearly 90 percent of investors who have voted, 94 percent are in favor of taking the Empire State Building public.

Of the two smaller properties associated with the IPO, the 250 West 57th Street entity has received the necessary votes for approval, while the 60 East 42nd Street entity has 96 percent of the necessary votes needed, with 90 percent of all votes in.

“The sooner we complete the solicitation process, the sooner the expenses and disruption to all participants may be brought to an end, and the benefits can be achieved,” the letter stated.

A spokesman for Malkin Holdings declined to comment.

Malkin Holdings seeks to create a publicly traded real estate investment trust made up of the Empire State Building and other New York properties it owns, as The Real Deal previously reported, and has faced a class-action lawsuit from a consortium of investors who believe the IPO would hurt their stake. Shares would trade on the New York Stock Exchange.