Qatar fund gets stake in Empire State

DOHA, Qatar — Qatar Investment Authority, the Middle Eastern country’s sovereign wealth fund, bought almost 10 percent of Empire State Building owner Empire State Realty Trust as it increases investments in North America and the Asia Pacific region.

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

The cash infusion may signal that the real estate investment trust is ready to buy new properties, KeyBanc analyst Craig Mailman said in a research note.

For Empire State Realty, the investment will help it “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,” John Kessler, the company’s president, said in the statement.

The company didn’t say how it will use the money raised from the stake sale. Chief Financial Officer David Karp said that the company recently expanded its revolving credit line to $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.

Empire State Realty Trust has been a publicly traded real estate investment trust since October 2013, following two years during which Empire State Building supervisors Peter Malkin and his son Anthony battled with some of the tower’s longtime investors over going public.