Sony Selling and Renting-back NY Office for $1.1 Billion

Thought recent property sale-and-lease-back deals by Nokia and AMD raised big cash? Wait till you see what Sony accomplished. The consumer electronics giant inked a deal liquidating the iconic Sony Tower, located on Madison Ave., New York City, for a whopping $1.1 billion, and renting it back on long-term-lease. Netting the deal on the other end is a consortium led by New York-based real-estate developer, Chetrit Group, LLC.

Liquidating its asset is obviously a move by Sony to quickly raise cash to clear debt. Out of the $1.1 billion it makes, after repaying debt related to the building and other institutional expenses, Sony will be left with net cash proceeds of $770 million, a gain of sale of $685 million will be recorded by beancounters at Sony as operating income.

The New York building isn't Sony's only big solid-asset up for sale and lease-back, one of the company's main buildings located in central Tokyo is also up for sale, from which Sony expects to raise as much as ?100 billion ($1.14 billion). Among the business assets up for sale are its battery division.

Source: http://www.nextpowerup.com/news/563/sony-selling-and-renting-back-ny-office-for-1-1-billion.html

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