Sony Corporation (6758) to sell former HQ and another building for $156M

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Sony Corporation (TYO:6758) announced a deal today to sell its former headquarters and another building for 16.1 billion yen ($156 million). Sony has been active at selling its assets in order to circumvent additional losses from it’s struggling consumer electronics businesses.

The sale was made to Sumitomo Realty & Development. It will add around 10 billion yen in operating profit for the upcoming April to June quarter. The building that is being sold houses Sony’s medical business and several other non-consumer related operations. That building was Sony’s HQ from 1990 to 2007, according to the WSJ.

Sony reduced around 5,000 jobs worldwide, spun out its TV division into a separate subsidiary, and sold its PC business. Sony is expecting to report a loss of $1.1 billion for the year ending this month. Last year, Sony sold its U.S. headquarters at 550 Madison Avenue for $1.1 billion.

Below is the press release that Sony sent out about the sale:

Sale of Certain Buildings and Premises at Gotenyama Technology Center
March 07, 2014 06:00 AM Eastern Standard Time

TOKYO–(BUSINESS WIRE)–

March 7, 2014

Sony Corporation

Sale of Certain Buildings and Premises at Gotenyama Technology Center

Sony Corporation (“Sony”) today announced that it has agreed to sell the NS Building and Building 4 and premises (1-12, Kitashinagawa 5 cho-me, Shinagawa-ku, Tokyo, Japan) at the Gotenyama Technology Center owned by Sony to Sumitomo Realty & Development Co., Ltd., a Japanese real estate company.

The agreed sale price is 16.1 billion yen and Sony aims to close this sale by the end of April 2014. Sony expects to realize a gain on the sale of approximately 10 billion yen, to be recorded as operating income, in the first quarter of the fiscal year ending March 31, 2015, when the sale closes. No impact is anticipated on Sony’s forecast of the consolidated financial results for the fiscal year ending March 31, 2014 as a result of this sale.

[Source: WSJ]

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