An unnamed Middle Eastern investor has made a joint $2.1bn bid to takeover New York’s Empire State Building on the eve of the current owners’ plan to include it in an initial public offering, it has been reported.
The unsolicited offer has been made in cash, New York real estate investor Philip Pilevsky told Bloomberg.
Pilevsky, who is president of New York-based Philips International, and partner Joseph Tabak are reported to be the joint bidders with the Middle Eastern group. He said the owners “know” the offer is viable.
Pilevsky would not reveal the identity of the Arab investor but said they had initiated the bid by contacting him.
“My partners want to be discreet,” he said. “They view it as a last opportunity.”
“To this guy, it’s like buying a painting,” a source told the newspaper. “It will be very hard to stop them. They will keep ratcheting up [the offer] until they get it.”
The landmark skyscraper is due to be included in a multi-office building IPO by Malkin Holdings after it won enough votes from investors to go ahead.
The Middle Eastern bid has topped another unsolicited offer of $2bn in cash by property investor Rubin Schron, who is part-owner of New York’s Woolworth Building.
“We received last week two unsolicited bids to purchase the Empire State Building, one for $2 billion and one for $2.1bn,” Malkin Holdings said in filing with the US Securities Exchange Commission on June 24.
“We are reviewing the offers and their terms. We consider all matters, including unsolicited offers, consistent with our fiduciary duties, to form a judgment on what action is appropriate. We do not intend to issue a comment until after our review.”
The 102-storey Empire State Building has been valued at between $2.3bn and $2.53bn.
It pays about $31m a year in property taxes, according to the New York Post.