Sony Corporation of America is selling its New York City headquarters for a brisk $1.1 billion. The 37-story Madison Avenue building will sell to The Chetrit Group, a real estate consortium, this March.
After transaction costs and the building debts are sorted, Sony should see only around $770 million of that $1.1 billion. Sony believes $685 million will be recorded as operating income.
After selling, Sony Music Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment are allowed to remain in the building for up to three years as promised by leaseback arrangement with the purchaser.