Sony is selling its New York headquarters for $1.1bn in the largest disposal of the Japanese electronics group’s programme of asset sales.
The sale of the building at 550 Madison Avenue, designed by renowned architect Philip Johnson, will generate net cash proceeds of about $770m, Sony said.
The 37-story building is being purchased by a group of investors led by The Chetrit Group, a New York-based company that owns a number of commercial properties in New York City and other major U.S real estate markets, for $1.1 billion. The sale will help Sony pay off debt and is expected to generate net cash proceeds of about $770 million.
“The Sony building is a very high-quality building and investors are still chasing after these trophy assets in New York seen by investors as a good store of value,” said Ben Carlos Thypin, director of market analysis at Real Capital Analytics. “Sony is leasing it back for three years, which is very attractive as it gives the buyer cash flow while they decided what to do with it long term.”
As part of the terms of the agreement, Sony will remain in the building as a tenant for up to three years. The transaction is expected to close in March.