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Sony sells Tokyo office for $1.2 billion

Sony sells Tokyo office for $1.2 billion

Thu 28 Feb 2013 9:05pm GMT / 4:05pm EST / 1:05pm PST
Business

Sony lets go of an office building as it consolidates assets

Sony Corporation today announced the sale of its Sony City Osaki office building for 111.1 billion yen ($1.2 billion/ 790.9 million). The building was sold to Nippon building Fund, Inc. and one unnamed Japanese investor, but Sony will remain in the building for five years under a new lease agreement.

Net cash after transaction costs comes to 110 billion yen ($1.19 billion/ 783 million), with Sony expecting a gain on 41 billion yen ($442.4 million/ 291.9 million) to go against operating income for the fourth quarter of the fiscal year ending on March 31, 2013.

The sale comes as Sony tries to slim down and cut costs.

"Sony has identified certain assets for possible sale as part of an initiative to transform its business portfolio and reorganize its assets. This sale was conducted as a part of that initiative. While this sale was anticipated and the potential gain on the sale was taken into account at the time of the forecast, Sony is currently reevaluating the aggregate impact of this sale and other factors on the forecast," said the company in its statement.

7 Comments

Paul Jace
Merchandiser

925 1,381 1.5
Ever wish you had enough money lying around where you could throw 1,2 billion of it toward an office building and not think twice about it? Yeah, me too.

Posted:A year ago

#1

Andreia Quinta
Creative & People Photographer

215 549 2.6
Either that or ice-cream. I like ice-cream...

Posted:A year ago

#2

Greg Wilcox
Creator, Destroy All Fanboys!

2,175 1,124 0.5
Next week's headline: "Sony redesigns its HQ into an "office slim" model"

Posted:A year ago

#3

Tom Anderson
QA Tester

1 0 0.0
Didn't they recently sell an office in the US for a huge amount too? Looks like they're going to have a lot to play with in their cash account(s) in the near future.

Posted:A year ago

#4

Nicholas Pantazis
Senior Editor

1,020 1,467 1.4
@ Tom Except the sales of these buildings aren't even close to covering the annual losses Sony as a corporation has, much less the billions of dollars in debt they now have. They are softening the blow a bit for now though.

Posted:A year ago

#5

Craig Page
Programmer

382 218 0.6
Doesn't their TV division alone lose $1.2 billion every 6 months?

Posted:A year ago

#6

Roland Austinat
roland austinat media productions|consulting

129 72 0.6
A sign that they are really not doing so well - first New York, now Tokyo.

If you sell and subsequently rent your office buildings, you really need cash fast.

Posted:A year ago

#7

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