Property

Qatar buys 9.9% stake in Empire State Building owner

Economic and voting interest obtained with $622m investment by sovereign wealth fund

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The Qatar Investment Authority (QIA) has taken a 9.9% stake in the trust owning New York’s Empire State Building with an investment of $622 million.

The Gulf state’s investment arm took up the stake in the New York-based and listed Empire State Realty Trust (ESRT), which also manages office and retail properties in Manhattan and the greater New York metropolitan area, said a statement by the trust.

“Our relationship with QIA is a great fit for ESRT. We look forward to a long and mutually beneficial relationship,” said Anthony E. Malkin, chairman and CEO of ESRT.

According to the statement, QIA bought 29,610,854 newly-issued Class A common shares of ESRT at $21.00 per share, giving it an economic and voting interest of 9.9% in the trust on a fully diluted basis.

“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,” John B. Kessler, president and chief operating officer of ESRT, was quoted as saying in the statement.

Apart from the Empire State Building, ESRT also manages 720,000 sq ft of retail space as well as 9.4 million sq ft of office space across 14 office properties.

QIA’s investments cover high-profile assets across the globe. Founded in 2005, the entity holds stakes in German carmaker Volkswagen, British supermarket chain Sainsbury’s, French football club Paris Saint-Germain, London department store Harrods, and Hollywood film studio Miramax, among other well-known brands.

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