August 9, 2013 6:12 pm
Thor makes second offer for Empire State Building
By Anjli Raval in New York


New York landlord Thor Equities has made a second offer for control of the Empire State Building, hoping to scupper plans to roll the landmark skyscraper into a trust before floating it on the stock market through a $1bn offering.


Thor, founded and run by property investor Joseph Sitt, made an undisclosed all-cash offer on Thursday to buy Empire State Building Associates, which owns the land and the building, said broker Jason Meister of Avison Young, who is representing the company.
 
This is higher than its $1.18bn value listed in regulatory filings, a person familiar with the situation said.


Thor also made an offer for the 63.8 per cent stake owned by the Helmsley Estate in Empire State Building Company, the entity that has the sublease on the building giving it effective control of the property until 2076.


In June, Thor Equities offered “north of $2.1bn in cash” for all the entities that control the building, competing with two other offers. The Empire State Building is valued at $2.5bn, including debt, according to filings.


Malkin Holdings, the manager of the building, plans to bring together the building and other New York-area properties into a real estate investment trust before floating it on the New York Stock Exchange. Malkin declined to comment.


The bids follow a year-and-a-half of clashes between Malkin and a cluster of dissident stakeholders who are reluctant to give up owning part of a building that was once the tallest in the world.


The sale would be an alternative to the Reit proposal, which has the approval of investors representing more than 80 per cent of the 3,300 Empire State Building units. A majority approval would also be needed for any sale.
http://www.ft.com/intl/cms/s/0/e7069e28-0101-11e3-a90a-00144feab7de.html#axzz2bUjKvLUY