Sony will sell its New York City headquarters at 550 Madison Avenue to the Chetrit Group for $1.1 billion, Bloomberg News reported.
The electronics giant will remain in the building that bears its name for about three more years, and will generate around $770 million in cash with the sale, when debt and transaction costs are accounted for.
“It makes sense for Sony, as it’s no longer a cash-rich company,” Keita Wakabayashi, an analyst at Tokyo-based Mito Securities, told Bloomberg News.
The Chetrit Group owns a number of trophy properties in New York City and beyond, including the historic Hotel Chelsea.
Eastdil Secured advised Sony in the deal. [Bloomberg]