Chetrit Group to buy Sony HQ for $1.1B

Sony CEO Kaz Hirai and 550 Madison Avenue
Sony CEO Kaz Hirai and 550 Madison Avenue

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.

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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]