$1.1 Billion Sale of Sony's NYC Headquarters
To take takes advantage of rising real estate values in New York, the cash-strapped electronics manufacturer company Sony is selling NYC headquarters to a group of investors led by Chetrit Group for $1.1 billion
- The transaction is expected to close in March.
- After repaying debt related to the building and other transaction costs, Sony expects to retain net cash proceeds of about $770 million, and is currently reevaluating its financial forecast, which it announced last November, for the current year ending March 31, 2013 to take the sale into account.
- Sony agreed to a lease that will allow its businesses (including Sony Music Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment) to remain in the building at 550 Madison Avenue for three years.
- Sony has endured four straight years of losses, due in large part to falling demand for its television sets and a weak Japanese economy. Sony would use the proceeds from sales of its New York headquarters to undertake a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth.