Sony is selling its New York HQ, then re-renting it|
Sony announced it's selling its headquarters building, located on 550 Madison Avenue, New York. The sale price is $1.1 billion.
What's interesting is that under the conditions of the deal, which should go through some time in March, Sony's various businesses will stay in the building for another three years.
After repaying the debt related to the building and various other fees, Sony expects to net $685 million, which will be recorder as operating income. Nifty, we would say. It would come just in time for the end of the fiscal year (March 31) to boost the balance sheet Sony will have to present its investors. This would allow the company to finish up the year on the black instead of the projected $200+ million loss.
There's no word on the planned expenses for renting the building in the three years to follow.
Since a new management team took over Sony last year, the challenge for the company has been to strengthen up, to reduce expenses and get rid of losing businesses.