Sony Corp. America is set to sell its New York City headquarters to a group led by The Chetrit Group for $1.1 billion. The agreement is scheduled to complete in March this year, will net around $770 million in cash and boost Sony's operating income by $685 million.
"Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move,” said Nicole Seligman, president of Sony America. "Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease."
Sony has deperately tried to get back into the black in recent years and this move is one among many by the corporation to do so. The company will be allowed to stay in the 37-story building at 550 Madison Avenue for up to three years on a leaseback agreement with the Chetrit Group while it searches for a new home.