Sony Sells Its New York Headquarters For $1.1 Billion
January 18, 2013 at 3:54 AM (PT)
SONY CORPORATION OF AMERICA has entered into a contract to sell its U.S. headquarters building, located at 550 Madison Avenue in NEW YORK CITY, to a consortium led by THE CHETRIT GROUP, a NEW YORK-based owner of commercial properties in the city and other major U.S. real estate markets.
The sale price is $1.1 billion, and it is expected that the transaction will close in MARCH 2013. SCA and other SONY businesses (including SONY MUSIC ENTERTAINMENT, SONY/ATV MUSIC PUBLISHING and SONY PICTURES ENTERTAINMENT, among others) will remain in the building for up to three years under a leaseback arrangement with the purchaser.
After repaying debt related to the building and other transaction costs, it is expected that SONY will receive net cash proceeds of approximately $770 million. SONY expects to realize a gain on the sale of approximately $685 million to be recorded as operating income.