Sony Announces Sales Of Its US-based Head Office In A $1.1 Billion Deal

Posted on Jan 18 2013 - 11:00am by Editorial Staff
Sony US HQ: 550 Madison Avenue Building

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.

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