Qatar Makes $622 Million Investment In Empire State Building

Its observatory segment operates the 86th and 102nd floor observatories at the Empire State Building.

Qatar’s sovereign wealth fund has acquired a stake in New York City’s Empire State Building through a $622 million deal for a minority stake in publicly-traded Empire State Realty Trust.

Notable investments made by QIA over the past 11 years include a stake in the Volkswagen Group and the purchase of luxury British retailer, Harrods.

In September 2015, Qatar announced plans to invest about $35 billion in the us over the next five years.

According to Bloomberg, the acquisition boosts Qatar’s investments in North America and the Asia Pacific region. The $622 million investment marks the latest injection of foreign money into NY real estate. Moreover, Real Estate Management Services Llc has 4.04% invested in the company for 1.44 million shares. “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”.

Empire State Realty Trust (ESRT) stock is expected to deviate a maximum of $0.96 from the average target price of $22.75 for the short term period. Chief financial officer David Karp said that the company had recently expanded its revolving credit line to $1.1bn. The company’s office and retail portfolio covers 10.1 million rentable square feet, consisting of 9.4 million rentable square feet in 14 office properties and 720,000 rentable square feet of retail.

At the time the fund said it would invest $35bn in the United States over the next five years.

The purchases comes as the QIA has been diversifying away from Europe and buying more properties in the U.S. and Asia.