Qatar wealth fund in US$622m Empire State deal

New York

QATAR Investment Authority, the sovereign wealth fund of the Middle Eastern country, bought a 9.9 per cent interest in Empire State Realty Trust, owner of New York's Empire State Building.

The fund purchased 29.6 million newly issued Class A common shares at US$21 each, and will have a 9.9 per cent economic and voting interest in the real estate investment trust. The acquisition translates into a new US$622 million investment in Empire State Realty, the company said on Tuesday.

The investment will help Empire State Realty "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," said John Kessler, the company's president.

Empire State Realty didn't say how it will deploy the money raised. Chief financial officer David Karp said that the company recently expanded its revolving credit line to US$1.1 billion. Those funds, combined with Qatar's infusion, will enhance the company's "ability to drive long-term value" for shareholders, he said.

The company owns 938,000 square metres of office and retail properties, mostly in Manhattan, with the rest in New York's northern suburbs. BLOOMBERG