NEW YORK CITY-Malkin Holdings LLC, the owners of iconic properties such as the Empire State Building and One Grand Central Place, are preparing to consolidate its office and retail properties into a publicly-traded real estate investment trust, SEC filings show. The company plans to raise $1 billion for its initial public offering and combine three of its LLCs into Empire State Realty Trust, Inc, a REIT focusing on buildings across Manhattan, Westchester County and Connecticut. Its class A common stock is expected to be listed on the New York Stock Exchange.
The consolidation—which was considered by the company in November 2011—is an effort to achieve liquidity, streamline business operations and reduce conflicts of interest. If approved, the new REIT will be led by its chairman, CEO and president, Anthony E. Malkin, who has provided portfolio leadership as president of the supervisor, while Peter L. Malkin will continue to provide guidance as chairman emeritus, all supported by the supervisor’s team of executives and staff, who are expected to join the company as part of the consolidation, the filing says. Bank of America/Merrill Lynch and Goldman Sachs & Co. are serving as underwriters.
"With these filings, Malkin Holdings is continuing to move forward with its investors on its previously planned consolidation of certain of its supervised office and retail properties into a publicly traded REIT," a spokesperson for Malkin Holdings tells GlobeSt.com, in an e-mail.
According to the prospectus, the REIT's strategy will focus on the leasing of available space at Malkin's existing Manhattan office properties. As of November 30, 2011, the company owned 12 office properties encompassing 7.7 million rentable office space, which were approximately 79.9% leased. Seven of these properties are located in the midtown Manhattan market and encompass in the aggregate of approximately 5.8 million rentable square feet of office space, including the Empire State Building. It also encompasses approximately 1.8 million rentable square feet in Fairfield County, Connecticut and Westchester County.
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