Consumer tech giant Sony has sold its US headquarters in Manhattan, New York, for US$1.1bn, in a move to keep the company buoyant as it strives to return to profitability.
A group of investors led by commercial property firm Chetrit Group purchased the 37-storey property in a deal expected to close in March, The Wall Street Journal reported. Sony will receive US$770m from the sale after paying off building-related debt and transaction costs.
“Sony is undertaking a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth,” the company said in a statement.
“At the same time, Sony is balancing cash inflows and outflows while working to improve its cash flow by carefully selecting investments, selling assets and strengthening control of working capital, such as inventory. This sale is made as a part of such initiatives.”
The Wall Street Journal reported the sale is a gain for Sony, as the selling price was more than four times the amount Sony had paid when it acquired the property from AT&T in 2002.
The building will be home to several of Sony’s business units, including its music and movie divisions, for another three years under a new lease management.