Real Estate Weekly – by CHRISTIAN BRAZIL BAUTISTA
An affiliate of Qatar’s sovereign wealth fund has purchased a 9.9 percent stake in Empire State Realty Trust for $622 million.
“We welcome QIA as an ESRT shareholder and see their investment as an endorsement of ESRT’s strategy, team and portfolio of irreplaceable assets. We continue to plan for the future, now with more capital and one of the most sophisticated and reliable real estate investors in the world as our partner. As we continue our internal growth strategy execution, added strength and flexibility in our balance sheet expand our capacity to take advantage of opportunities through external growth,” said Empire State Realty Trust President and CEO John B. Kessler.
Empire State Realty Trust’s office and retail portfolio covers 10.1 million square feet. The office and retail REIT has nine office towers and 13 retail locations in New York City, according to its website. This includes trophy assets such as the Empire State Building, One Grand Central Place and 250 West 57th Street.
The Qatari Investment Authority, the sovereign wealth fund of the state of Qatar, purchased 29,610,854 shares. This amounts to a 9.9 percent voting interest and a 19.4 percent ownership of ESRT’s Class A shares.
The transaction is the latest in a series of large deals for QIA in New York City. The company announced a $700 million partnership with Tishman Speyer for an office development in Long Island City last month. In October of last year, it also purchased a 44 percent stake in Brookfield’s $8.6 billion Manhattan West project.