Empire State Realty Trust, the company that controls the landmark Empire State Building in New York City, disclosed in a Securities and Exchange Commission (SEC) filing this month that it is planning a $1 billion initial public offering (IPO) in the coming months. Empire State Realty Trust will list on the New York Stock Exchange and trade under the "ESB" ticker, according to its SEC fillings. The realty trust controls 12 properties including the Empire State Building, two Westchester County properties in downtown White Plains and Harrison, and several other locations in Connecticut. Bank of America Merrill Lynch and Goldman Sachs Group Inc. will advise on the IPO.
According to Bloomberg, Malkin Holdings LLC, which owns the Empire State Building in conjunction with the estate of Leona Helmsley, said last November that it was considering joining a new REIT. Malkin Holdings is led by Peter Malkin and his son Anthony Malkin. The move is the culmination of efforts by the Malkin family to simplify control of its sprawling real estate holdings, reported the New York Times. The IPO will allow the Malkins to convert the equity held by other investors into stock in the new company, Empire State Realty Trust.
"Because it's got an iconic building as a centerpiece, I expect it will be successful anyway, but you're going to have more or less a higher percentage" of individual investors, said Lawrence Longua, director of the REIT Center at New York University's Schack Institute of Real Estate in a Businessweek article. For institutional investors, the owners "are very recognized names in the industry, so I suspect all in all, it'll do well," he said.
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