Empire State Realty Trust offers preferreds in exchange for units

By Angela McDaniels

Tacoma, Wash., May 28 - Empire State Realty Trust, Inc. began an exchange offer for up to $250 million of the operating partnership units of Empire State Realty OP, LP, according to a company news release.

Once the exchange offer is completed, all operating partnership units tendered will be converted on a one-for-one basis into private perpetual preferred units of Empire State Realty OP paying $0.60 per unit per year, giving unitholders an increase in annual distribution from their current $0.34.

The transaction is only available to current operating partnership unitholders and will continue the tax-deferral status of the unitholders.

The lead underwriters of Empire State Realty Trust's initial public offering have waived certain lock-up restrictions to allow participation in the exchange offer by operating partnership unitholders.

The exchange offer will expire at midnight ET on June 26.

In the news release, Empire State Realty Trust chairman, chief executive officer and president Anthony Malkin described the transaction as consistent with the company's "objectives to drive shareholder value and increase distributions."

The information agent is MacKenzie Partners, Inc. (888 410-7850).

Based in New York City, Empire State is a real estate investment trust with a focus on office and retail properties in Manhattan and the greater New York metropolitan area.

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