Sony Corp. of America Sells New York HQ for $1.1 Billion

In a move to bolster its balance sheet and cash position, Sony Corp. of America has agreed to sell its 550 Madison headquarters building in New York City for $1.1 billion to a consortium of investors led by the Chetrit Group.

Sony companies, including Sony Music Entertainment and Sony/ATV Music Publishing, will remain in the building for up to three years, under a sale/leaseback arrangement in a deal expected to close in March.

According to the announcement, Sony will realize $770 million in net cash proceeds on the deal, after repaying debt and other transaction costs. In a statement, the company said it is "undertaking a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth."

As part of that, Sony is working to improve its cash flow by carefully selecting investments, selling assets and strengthening control of working capital such as inventory, the company added.