Rockefeller Group Seeking Way to Raise Cash for Heirs

Rockefeller Group Inc. confirmed today that it is seeking ways to raise more cash for the family members who are majority shareholders after a published report indicated part of the firm could be up for sale by month’s end.

The company’s management has been authorized by the board of directors “to explore strategic alternatives for recapitalization,” said Vince Silvestri, a spokesman for Rockefeller Group, whose vast holdings include the 19-building, 22-acre Rockefeller Center and the Time-Life buildings in Manhattan.

No Comment on Report

But Silvestri said he could not comment on a report in today’s Wall Street Journal that said Rockefeller Group was trying to sell a large stake in the family-owned company to outside investors for more than $1 billion.

The newspaper, quoting unidentified sources, said Rockefeller Group may seek between $1.3 billion and $2 billion for 40% to 80% of the company. It said family members were hoping to raise cash without losing control over the management of company assets.

The plan would represent another step by Rockefeller Group to raise cash for a generation of Rockefellers whose inheritance is largely locked up in real estate and other corporate holdings.

$1.3-Million Mortgage

Four years ago, Rockefeller Group refinanced Rockefeller Center by taking out a $1.3-billion mortgage on some of the rentable space, then selling shares in that mortgage to the public through a real estate investment trust.

The Rockefeller family fortune was built by John D. Rockefeller, founder of Standard Oil Co., and was estimated at $900 million by 1911.

His son, John D. Rockefeller Jr., created a series of five trusts for his children in 1934. Those trusts are the principal owners of Rockefeller Group, with descendants of John D. Rockefeller Jr. the main beneficiaries.