It may have taken slightly longer than expected, but the Empire State Realty Trust Inc., led by Peter and Anthony Malkin, has achieved more than the number of votes necessary to proceed with the launch of an IPO and real estate investment trust that will include the Empire State Building as an asset.
“We urge all investors who have not yet voted in favor of the proposed consolidation and IPO to do so immediately,” the spokesperson told The Commercial Observer, in an email. “We look forward to delivering to our investors what we believe to be the many benefits of this transaction.”
The voting will likely remain open in order to give stragglers a chance to vote in favor of the proposal, which would allow them to avoid being bought out for $100 share, a stipulation approved by Supreme Court Justice O. Peter Sherwood on the last day of April – one of two major roadblocks that stood in the way of the Malkins and their proposed IPO launch of the REIT.
On May 2, Justice Sherwood also said he would approve a $55 million class-action settlement between the Malkins and a separate group of investors tied to the building.
Those decisions suggested that shareholders would be compelled to vote in favor of the IPO, and last month a previous regulatory filing from the Malkins stated that they were just half of one percentage point away from clearing the mark.
Critics have argued that the IPO robs investors of a predictable income stream from the building’s rents, though the Malkins have countered that it would offer greater growth, liquidity and diversification opportunities.
The Empire State Building will join 19 other properties in a new REIT called Empire State Realty Trust Inc.