In Eastdil Brokered Deal, Sony To Sell, Leaseback 550 Madison Ave. To Chetrit Consortium for $1.1 Billion
Sony Corporation of America (SCA), a wholly owned subsidiary of Japan's Sony Corp., has struck a deal to sell its 827,686-square-foot U.S. headquarters building at 550 Madison Avenue in New York City to an investment consortium led by The Chetrit Group for $1.1 billion.
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The sale price works out to approximately $1,329 per square foot, and is expected to close in March 2013. SCA and other Sony businesses (including Sony Music Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment, among others) will remain in the building for up to three years under a leaseback arrangement with the new owners.
Sony bought the building for $235.5 million in December 2001. After repaying debt related to the building and other transaction costs, the company expects to clear $770 million in net proceeds realize a $685 million gain on the sale.
Sony enlisted Eastdil Secured to advise it on the building sale after undertaking a range of initiatives to strengthen its financial position and business competitiveness and for future growth.
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