Sony has announced that it is selling its U.S. headquarters building, located at 550 Madison Avenue in New York City for $1.1 billion. A consortium led by NY-based The Chetrit Group will now own the building, although the offices of Sony and its subsidiaries will continue in the building for the next three years under a leaseback arrangement with the purchaser.
After all the settlements, the deal is expected to bring in net cash of about $770 million ($685 million would be recorded as operating income).
This move does not come as a surprise considering the Japanese manufacturer continues with its drive to cut costs and bring in extra cash.
“Sony is undertaking a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth. At the same time, Sony is balancing cash inflows and outflows while working to improve its cash flow by carefully selecting investments, selling assets and strengthening control of working capital such as inventory. This sale is made as a part of such initiatives,” Sony noted in a press release.
Reuters add that Sony has also put one of its main buildings in central Tokyo up for sale and it could raise as much as 100 billion yen ($1.14 billion). Company also seems to be considering sale of its battery business.
Image Credit: David Shankbone