Sony US HQ: 550 Madison Avenue Building
Sony today announced that it has entered into a $1.1 billion sale and lease-base deal for its US-based head office, located at 550 Madison Avenue in New York City. The company sold it to a consortium led by The Chetrit Group, a New York-based owner of commercial properties in New York City and other major US real estate markets.
The sale price is $1.1 billion, and it is expected that the transaction will close in March 2013 although the 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 lease back arrangement with the purchaser.
Sony expects to realize a gain after repaying debt related to the building and other transaction costs on the sale of approximately $685 million to be recorded as operating income. It is expected that Sony will receive net cash proceeds of approximately $770 million.
