Qatar Investment Authority Makes $622M Investment in Empire State Realty Trust (ESRT)
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Empire State Realty Trust, Inc. (NYSE: ESRT) announced that an affiliate of Qatar Investment Authority (“QIA”) has acquired a 9.9% interest in the Company on a fully diluted basis (currently 19.4% ownership of Class A shares) through a new $622 million investment.
John B. Kessler, Empire State Realty Trust’s President and Chief Operating Officer, stated, “We welcome QIA as an ESRT shareholder and see their investment as an endorsement of ESRT’s strategy, team and portfolio of irreplaceable assets. 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. As we continue our internal growth strategy execution, added strength and flexibility in our balance sheet expand our capacity to take advantage of opportunities through external growth.”
David A. Karp, Empire State Realty Trust’s Executive Vice President and Chief Financial Officer, added, “From inception, we have made clear that we are committed to the long term for our capital structure and flexibility for the future. With the recent expansion of the Company’s unsecured revolving credit facility to $1.1 billion and now this addition of QIA’s equity investment, our ability to drive long-term value for all ESRT shareholders is further enhanced.”
QIA purchased 29,610,854 newly issued Class A common shares of Empire State Realty Trust at $21.00 per share, equivalent to a 9.9% economic and voting interest in the Company on a fully diluted basis.
QIA’s entire 9.9% Company interest is in Class A shares which represents a 19.4% ownership of Class A shares; however, QIA can only vote shares equivalent to 9.9% of all voting securities, with the balance of their shares to be voted by ESRT in accord with the votes of all other voting securities.
Additional information relating to the investment agreements can be found in a current report on Form 8-K that will be filed with the U.S. Securities and Exchange Commission.
Anthony E. Malkin, Chairman and CEO, Empire State Realty Trust said, “Our relationship with QIA is a great fit for ESRT. We look forward to a long and mutually beneficial relationship.”
Darcy Stacom of CBRE Group introduced QInvest to the Company. Goldman, Sachs & Co. and Eastdil Secured acted as financial advisors to the Company. Goodwin Procter, Proskauer Rose, and Clifford Chance U.S. acted as the Company’s legal counsel. QInvest acted as financial advisor to QIA while White & Case acted as the QIA legal counsel.
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