From the Wires
Sony Corporation of America Announces Sale of 550 Madison Avenue Building
By: PR Newswire
Jan. 17, 2013 08:06 PM
NEW YORK, Jan. 17, 2013 /PRNewswire/ -- Sony Corporation of America ("SCA"), a wholly-owned subsidiary of Sony Corporation ("Sony"), today announced that it 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 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. 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.
Sony is currently reevaluating its forecast of the consolidated financial results for the current fiscal year ending March 31, 2013 to take into account this sale and other factors that might affect such forecast.
Eastdil Secured advised Sony on this transaction.
1. Reasons for this sale
2. Summary of assets to be sold
3. Summary of Sony Corporation of America
4. Summary of Buyer
(For reference) Sony's consolidated financial forecast for the fiscal year ending March 31, 2013, which was announced on November 1, 2012, and its consolidated financial results for the fiscal year ended March 31, 2012
(Yen in billions)
About Sony Corporation of America:
Sony Corporation of America, located in New York, NY, is the U.S. headquarters of Sony Corporation, based in Tokyo, Japan. Sony's principal U.S. businesses include Sony Electronics Inc., Sony Mobile Communications (USA) Inc., Sony Computer Entertainment America LLC, Sony Network Entertainment Inc., Sony Pictures Entertainment Inc., Sony Music Entertainment, Sony/ATV Music Publishing LLC, and Sony Online Entertainment LLC. With some 900 million Sony devices in hands and homes worldwide today, a vast array of Sony movies, television shows and music, and the PlayStation Network and the Sony Entertainment Network, Sony creates and delivers more entertainment experiences to more people than anyone else on earth.
Sony recorded consolidated annual sales of approximately $79 billion for the fiscal year ended March 31, 2012, and employs 162,700 people worldwide.
SOURCE Sony Corporation of America
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