Favoring IPO, Malkin rejects ESB bids
Malkin Holdings, the lead owner and manager of the Empire State Building, has rejected several buyout offers for the 2.9-million-square-foot tower. Had Malkin found an acceptable offer, plans to take the building public in a real estate investment trust package that includes 18 buildings and other properties would have been scuttled.
According to a regulatory filing cited by Bloomberg News, Malkin determined that an IPO for the Empire State Building was in investors’ best interests, after reviewing the proposals in conjunction with Lazard, an asset management and financial advisory service.
However, Jason Meister, an Avison Young broker representing some of the potential buyers, told Bloomberg that all options are still “completely on the table.” He added that he is eager to see the details of Lazard’s analysis.
“I would think the investors would be interested in understanding why the REIT was a better alternative,” Meister told Bloomberg in a telephone interview.
As The Real Deal previously reported, at least six companies have put in bids, with some topping $2.3 billion for the Empire State Building. Some of the real estate heavyweights that had been vying for New York’s most iconic office property include developer Joseph Sitt’s Thor Equities and Rubin Schron’s Cammeby’s International. [Bloomberg News] —Christopher Cameron