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ESB REIT Moves One Step Closer to Reality

NEW YORK CITY-The Malkins and their supporters prevailed in the latest court battle over their proposed financial restructuring.

By Rayna Katz | Updated on February 22, 2013

NEW YORK CITY-A court judge Thursday granted preliminary approval of a class-action settlement with the Malkin family and a group of investors, who are seeking to combine the management of the iconic Empire State Building with 18 other properties into a publicly traded REIT. Judge Peter Sherwood, in New York County Supreme Court, was charged with evaluating a previously reached settlement agreement—which would enable the group to pay out $55 million to be distributed among investors—after another investor group raised objections to the agreement, reports the Wall Street Journal. The hearing is only considered preliminary approval however; the Judge ordered a final hearing to be held on May 2nd, according to Judge Sherwood’s decision.

On that occasion it will be determined if the settlement agreement is “fair, reasonable and adequate” and whether the settlement should “finally be certified as a class action,” according to the Judge’s decision. The judge also stipulated that parties to the class action “may opt out to preserve any right to pursue potential claims for money damages.”

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