NEW YORK CITY-Shortly after Malkin Holdings announced that it had rejected offers to buy the Empire State Building and would proceed with plans to launch a REIT backed by the office icon and other assets, another unsolicited bid reportedly has come in. The New York Post reported Tuesday that Thor Equities, which had previously offered $1.2 billion to buy Empire State Building Associates, was now prepared to pay $1.4 billion for the land, building and master lease at 350 Fifth Ave.
A spokesman for Malkin Holdings declined comment. GlobeSt.com's calls to a Thor spokesman were not returned by deadline Tuesday.
This past Friday, Malkin Holdings chairman Peter Malkin and president Anthony Malkin noted that they had received “indications of interest to purchase the fee and/or operating lease positions of the Empire State Building, as well as one indication of interest to purchase the fee and operating lease positions of One Grand Central Place,” the office tower at 60 E. 42nd St. As fiduciaries, they wrote, “we review all matters concerning investment groups we serve” and therefore engaged Lazard Frères & Co. LLC as an independent financial advisor on the unsolicited bids. “After our review, we have concluded that it is in your best interest to proceed with the consolidation and IPO as approved by a supermajority of the participants.”
Thor's bid, according to the Post, would allow the holdout participants who didn't approve the REIT consolidation to keep their shares and cash out after five years. It also stated that a deposit of $2.5 million would be provided and increased to $12.5 million after it was countersigned, with a deal closing after a 60-day due-diligence process.
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