NEW YORK CITY-Shortly after Malkin Holdingsannounced that it had rejected offers to buy the EmpireState Building and would proceed with plans to launch aREIT backed by the office icon and other assets,another unsolicited bid reportedly has come in. The New YorkPost reported Tuesday that Thor Equities,which had previously offered $1.2 billion to buy Empire StateBuilding Associates, was now prepared to pay $1.4 billion for theland, building and master lease at 350 Fifth Ave.


A spokesman for Malkin Holdings declined comment.'scalls to a Thor spokesman were not returned by deadlineTuesday.


This past Friday, Malkin Holdings chairman PeterMalkin and president Anthony Malkin notedthat they had received “indications of interest to purchase the feeand/or operating lease positions of the Empire State Building, aswell as one indication of interest to purchase the fee andoperating lease positions of One Grand Central Place,” the officetower at 60 E. 42nd St. As fiduciaries, they wrote, “we review allmatters concerning investment groups we serve” and thereforeengaged Lazard Frères & Co. LLC as an independent financialadvisor on the unsolicited bids. “After our review, we haveconcluded that it is in your best interest to proceed with theconsolidation and IPO as approved by a supermajority of theparticipants.”


Thor's bid, according to the Post, would allow theholdout participants who didn't approve the REIT consolidation tokeep their shares and cash out after five years. It also statedthat a deposit of $2.5 million would be provided and increased to$12.5 million after it was countersigned, with a deal closing aftera 60-day due-diligence process.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.