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Sony to Sell New York Office Building

$1.1 billion of real estate sold to tide financial losses.

Chetrit Group is in the process of completing the purchase of Sony's Madison Avenue property, which is the current home to two of Sony's entertainment divisions. The sale is set to go through at a whopping $1.1 billion, although that will equate to around $770 million once any outstanding bills / debts have been settles that remain on the building. Not only is this a massive financial boost for Sony in their time of restructuring but its also a record profit for the company. Since Sony didn't pay $1.1 billion for the building back in 2002, Sony is set to make a whopping £685 million in profit on the sale.

Sony isn't about to pack its bags and leave though, I can't image the scale of such an operation should the choose to move out given the scale of the building and the company, however they do intend to lease the building back from Chetrit Group who will now effectively be acting as land lord to the property for the next three years. Good news then for the 1,500 Sony employees who work in the building as they won't have to commute to a different office, at least not yet.

This will certainly help Sony as the "rent" on the building is obviously a fraction of the cost of what they sold it for, but a company must do what they can to survive and in the current global economy Sony would have been mad to not take advantage of this opportunity. Let’s hope it signals a change of pace for the company and that it starts to aid with the company financial recovery sometime soon.