U.S. & World
U.S. & World

Sony Will Sell Its Headquarters by 1,100 Million

By on January 18, 2013

The Japanese giant Sony technology announced today the sale of its headquarters in the United States, located in New York, for 1,100 million dollars (823 million euros) to a consortium led by property Chetrit Group.

In a statement issued by the Japanese subsidiary of the U.S., Sony Corporation of America (SCA), the multinational explained that the sales transaction of its headquarters, located on Madison Avenue, in the heart of Manhattan would be ending next March.

In addition, Sony agreed with the buyer that its affiliates Sony Music Entertainment and Sony Pictures Entertainment would remain in the same building rented over the next three years.

With the sale of its headquarters, Sony expects to earn $ 685 million (512 million euros) after paying the costs associated with the building and other transactions, in a operation that included in their accounts of the current fiscal year, which in Japan ends on March 31.

Sony said in the statement that is immersed “in a series of initiatives to strengthen its financial base and business competitiveness and future growth.”

The multinational recorded in 2011 nearly 4,000 million euros (5,345 million) loss, its fourth straight year in the red, prompting a new president, Kazuo Hirai, to be presented in April last year to resume a strategy direction of benefits.

Among the measures approved is cutting about 10,000 jobs this fiscal year or the expansion of the business portfolio to other sectors such as medical equipment.

With the sale of the New York headquarters Sony balances the cash in and out, while “working to improve their cash flow by careful selection of investments, asset sales and strengthening control of working capital.”

According to Japanese media, Sony may also announce the sale of its building “Sony Osaki City”, located in Tokyo, which is home to about 5,000 employees dedicated to the segment of liquid crystal displays for TVs.

Looking to the current year, Sony expects losses and leave earn 20,000 billion yen (166 million euros, 222 million dollars) and to achieve an operating profit of 130,000 million yen (nearly 1,100 million, $ 1,470 million).