Japan’s Sony Corp. has just announced it will be selling its U.S. headquarters building in Manhattan as part of its ongoing restructuring efforts. While Sony will remain in the Madison Avenue tower for the next three years as part of a lease agreement, a group of investors have agreed to make the purchase for $1.1 billion.
This announcement follows a similar decision made by Sony in Japan to sell its landmark Tokyo building for $1.2 billion. While CEO Kazuo Hirai just stated yesterday that the TV and electronics manufacturer was on its way to recovery, Sony still has a lot of debt to handle and must continue to liquidate unnecessary assets. The firm estimates the deal will result in $770 million in net proceeds after the property is paid off. Sony adds that it expects the sale to be completed before the end of March, just prior to the start of the 2013 fiscal year.
Standing 37 stories tall, the New York tower was originally built in 1984 for telecom giant AT&T, while Sony purchased it in 2002. CEO Hirai has been quick to admit that recent times have been rough for Sony, with the last four years spent in the red, and roughly $10 billion lost on TVs over the last decade. Since assuming his position in April of last year, however, he has made quick progress on his restructuring program valued at $945 million. In addition to major consolidations throughout the company, he announced an elimination of 10,000 jobs worldwide.