A New York State Supreme Court judge has approved a $55 million settlement between a group of investors in the Empire State Building and Malkin Holdings, the New York Observer reported. The stakeholders had contested Malkin’s plans to include the iconic tower in a new publicly-traded real estate investment trust.
Judge O. Peter Sherwood signed off on the deal earlier today.
“It Is The Court’s intention to approve the settlement,” he said.
The agreement, contingent on a successful initial public offering raising at least $600 million, calls for an 80 percent cash payment, with the remaining value paid in stock in the new REIT. The plaintiffs will become “operating partners.”
However, an attorney representing a different group of stakeholders — who lodged a separate lawsuit challenging Malkin’s plan to buy out current investors for $100 per share — said he would appeal the judge’s approval of the settlement. Yesterday, that group failed to convince Judge Sherwood that the buyout deal was illegal, a ruling that will also be appealed.