Empire State Realty Trust, Inc. (NYSE: ESRT), a real estate investment trust, has agreed to proceed with a $622 million investment deal that grants affiliate Qatar Investment Authority (“QIA”) a 9.9% interest in the company on a fully diluted basis. This attributes to a 19.4% ownership of Class A shares belonging to Empire State Realty Trust, who own office and retail properties in Manhattan, Fairfield County, and the greater New York Metropolitan area.
Specifically, QIA purchased 29,610,854 newly issued Class A shares of ESRT at $21.00 per share. The portfolio of 20 commercial properties and condos located in Connecticut and New York that were transferred to QIA includes six retail and office properties located in Stamford, Norwalk, and Westport totaling over 1.02 million square feet of rentable area. The Connecticut properties included in the sale can be seen in the slideshow below.
The deal represents a partnership of two massive real estate investment agencies operating throughout the northeast. Empire State Realty Trust, as of June 30, 2016, owns and manages a retail/office portfolio covering 10.1 million rentable square feet that includes arguably one of the most famous buildings in the world, the Empire State Building. Qatar Investment Authority, founded by the State of Qatar in 2005, is an emerging world-class investment arm of the country seeking to diversify the nation’s economy with new asset classes focused on the long-term. In regards to the future, Anthony E. Malkin, Chairman and CEO of ESRT, said, “Our relationship with QIA is a great fit for ESRT. We look forward to a long and mutually beneficial relationship.”