Microprocessor company Advanced Micro Devices is going to be selling their offices in Austin, Texas with plans to lease it back. This deal is expected to help AMD receive around $164 million in cash.
AMD is selling their Austin, Texas campus to real estate company Spear Street Capital and the transaction is expected to close on March 26th. AMD is planning to get rid of their non-core investments and double down on their technology.
?As we reset and restructure AMD for long-term success, we are taking a number of steps designed to optimize our business and monetize assets,? stated AMD CFO Devinder Kumar. ?The sale of our Austin campus will unlock a significant amount of capital, while the multi-year lease back of our Austin campus reconfirms our long-term commitment to the city that so many AMD employees have called home since 1979.?
AMD will see a $50 million charge as they book a loss on the selling price compared to the carrying value of the property. Nokia did something similar with their headquarters in Helsinki in December where they raised $220 million. AMD lost around $1.18 billion in 2012 as a whole.