(Corrects to 102 stories from 102 years old in eighth
paragraph, and corrects when Wien died to 1988 from 1983 in
By Ilaina Jonas
NEW YORK, Sept 19 Empire State Realty Trust Inc,
the real estate investment trust with the iconic New York
skyscraper as its centerpiece, plans to launch an initial public
offering of 71.5 million shares at $13 to $15 apiece, according
to a regulatory filing on Thursday.
The shares are expected to price on Oct. 1, a source
familiar with the matter said. The IPO is expected to generate
more than $1 billion, making it the third largest REIT debut.
The bankers involved in bringing the REIT to market, led by
Bank of America Corp and Goldman Sachs & Co, are
launching a roadshow which will attempt to garner interest from
large funds to buy the shares. The final price of the shares
will be determined by the interest from the roadshow.
The underwriters also would be granted an option to purchase
10.725 million shares more if demand rises, according to a
filing with the U.S. Securities and Exchange Commission. The
shares are expected to trade under the symbol "ESRT," the latest
The road to an IPO for the REIT, which also will include
more than 18 other properties, has been exceptionally long.
Malkin Holdings LLC, which spearheaded the plan, kicked off the
effort to roll up the properties into the REIT at the end of
November 2011. It was quickly met with opposition from a small
but vocal group of investors and a few court cases.
Once the proposed REIT plan garnered the approval of the
investors, several New York developers offered to buy the Empire
Malkin Holdings rejected the offers, saying that after debt
and other costs, the proposals were shy of the value the REIT is
expected to generate to investors, according to a regulatory
The 102-story skyscraper and its more than 2,800 investors
are managed by Malkin Holdings. The relationship dates back to
the early 1960s, when Lawrence Wien, one of the first pioneers
of syndicated real estate ownership, sold 3,300 units at $10,000
and created Empire State Building Associates. Simultaneously, he
sublet the property for 114 years to Empire State Building Co,
owned by Wien and real estate magnet Harry Helmsley.
Over the years, Empire State Building Associates also bought
the land. Wien died in 1988, passing control of the Empire State
Building and several other New York buildings in the REIT to his
son-in-law Peter Malkin, the chairman of Malkin Holdings, and
his grandson Anthony Malkin, Malkin Holdings president.
Anthony Malkin is chairman, chief executive officer, and
president of the REIT.
(Reporting by Ilaina Jonas, editing by G Crosse, Andrew Hay and