Sony to sell its U.S. headquarters building for $1.1 billion

Fri Jan 18, 2013 2:22am GMT

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(Reuters) - Sony Corp (6758.T) said it has agreed to sell its U.S. headquarters building in New York City for $1.1 billion to a consortium led by real estate developer The Chetrit Group.

After repayment of debt related to the building and other transaction costs, Sony said it is expected to receive net cash proceeds of about $770 million. A gain on the sale of about $685 million would be recorded as operating income, it added.

Under new Chief Executive Kazuo Hirai, Sony is focusing on consumer electronics - particularly mobile phones, tablets and gaming - and shedding non-core assets, as it seeks to regain ground against rivals like Samsung Electronics Co (005930.KS) and bounce back from four straight years of net losses.

The company has also put one of its main buildings in central Tokyo up for sale in a deal that could raise as much as 100 billion yen ($1.14 billion), sources told Reuters earlier this month, and is considering the sale of its battery business.

(Reporting by Sakthi Prasad in Bangalore; Editing by Richard Pullin)

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Comments (1)
About-Face wrote:
De ja vu for Japanese investors all over as was in the 1980′s – bought high price real estates and art pieces to sell at a loss a decade latter. When, if ever, will the Japanese learn!

Jan 18, 2013 9:23am GMT  --  Report as abuse
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