NEW YORK Dec 27 U.S. regulators have given the
green light to the manager of the Empire State Building to ask
investors to vote to on a plan to fold the iconic building into
a new real estate investment trust (REIT) that eventually will
be publicly traded.
After months of review, the U.S. Securities and Exchange
Commission signed off on the documents allowing Malkin Holdings
LLC to solicit investors in the Empire State Building to vote on
the plan for the building to be the centerpiece of more than 18
properties in Empire State Realty Trust Inc, according
to a filing Wednesday.
"Malkin Holdings will commence its solicitation of investors
in due course," a Malkin Holdings representative said in an
The REIT proposal has divided the Empire State investors.
Some believe Malkin is getting too much from the split of the
ownership at their expense, while others support the plan as a
way to cash out of a long-term investment they inherited from
parents and grandparents.
The 2,824 investors hold 3,300 units that originally were
sold for $10,000 in 1961 in Empire State Building Associates,
the company that owns the building. The investors were divided
into three groups holding 1,100 units per group. The REIT plan
requires the approval of holders of at least 80 percent of the
units in each of the three groups.