Sony selling NY headquarters for $1.1 billion, will rent space from new owners
Despite losing a little less each quarter since Kazuo Hirai took over as CEO, Sony still appears to be looking for ways to cut the fat. Its latest move? Sell the house. Taking a page from Nokia’s book, Sony has announced that it has agreed to sell its New York headquarters building to a consortium led by The Chetrit Group. After settling its debts on the building, the $1.1 billion sale will net Sony about $685 million in operating income, potentially giving it the extra cashflow it needs to avoid a negative Q3 earnings report. According to Reuters, the firm may be planning a similar move in Tokyo, which could score Sony another $1.14 billion to balance its budget. Check out the company’s official announcement after the break.
[Image credit: Ian Muttoo, Flickr]
Sony Corporation of America Announces Sale of 550 Madison Avenue Building.
NEW YORK, Jan. 17, 2013 /PRNewswire/ — Sony Corporation of America (“SCA”), a wholly-owned subsidiary of Sony Corporation (“Sony”), today announced that it has entered into a contract to sell its U.S. headquarters building, located at 550 Madison Avenue in New York City, to a consortium led by The Chetrit Group, a New York-based owner of commercial properties in New York City and other major US real estate markets.
(Photo: http://photos.prnewswire.com/prnh/20130117/NY44753 )
The sale price is $1.1 billion, and it is expected that the transaction will close in March 2013. SCA and other Sony businesses (including Sony Music Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment, among others) will remain in the building for up to three years under a leaseback arrangement with the purchaser.
After repaying debt related to the building and other transaction costs, it is expected that Sony will receive net cash proceeds of approximately $770 million. Sony expects to realize a gain on the sale of approximately $685 million to be recorded as operating income.
Sony is currently reevaluating its forecast of the consolidated financial results for the current fiscal year ending March 31, 2013 to take into account this sale and other factors that might affect such forecast.
Eastdil Secured advised Sony on this transaction.
1. Reasons for this sale
Sony is undertaking a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth. At the same time, Sony is balancing cash inflows and outflows while working to improve its cash flow by carefully selecting investments, selling assets and strengthening control of working capital such as inventory. This sale is made as a part of such initiatives.
2. Summary of assets to be sold
Assets / Location Headquarters building of Sony Corporation of America
(at 550 Madison Avenue in New York City, the United States of America)
Selling Price $1.1 billion
Book Value Approximately $174 million
Gain on Sale Expected to be approximately $685 million
Current Status Headquarters of Sony Corporation of America
3. Summary of Sony Corporation of America
Trade name
Sony Corporation of America
Address of head office
550 Madison Avenue, New York, NY 10022, the United States
Name and title of representative
Michael Lynton, CEO
Business
Management of Sony Group’s businesses in the U.S.
Stated capital
$11,316.7 million
4. Summary of Buyer
Trade name
550 Madison Fifth LLC
Address of head office
c/o The Chetrit Group, LLC, 512 Seventh Avenue, New York, NY 10018, the United States
Contact Information
c/o The Chetrit Group, LLC, attention: Jacob Chetrit
Purpose of incorporation
Special purpose entity to own real estate
Jurisdiction over incorporation
A limited liability company established under the law of the State of Delaware
Date of incorporation
January 15, 2013
Summary of investors
A consortium led by The Chetrit Group, a New York-based owner of commercial properties of various property types in New York City and other major US real estate markets
Relationship with Sony
Corporation
Capital relationship
Sony is not an investor in the Buyer. There is no capital relationship between the Buyer and Sony required to be referred to herein. There is no capital relationship between affiliates of the Buyer and Sony required to be referred to herein.
Personnel relationship
There is no personnel relationship between the Buyer and Sony required to be referred to herein. There is no personnel relationship between affiliates of the Buyer and Sony required to be referred to herein.
Transaction relationship
There is no transaction relationship between the Buyer and Sony required to be referred to herein. There is no transaction relationship between affiliates of the Buyer and Sony required to be referred to herein.
Status as a related party
Neither the Buyer nor its affiliates are deemed to be a related party of Sony.
Via: Reuters
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Futuristic Residence in Athens Reflecting The Owner’s Passion for Yachts
Greek firm 314 Architecture Atudio completed the design for H3 House, a futuristic residence suspended on pillars, which seems to hover over the blue waters of the neighboring swimming pool. The detached building has a total area of 300 square meters and was constructed on a land of 7000 suqare meters in the outskirts of Athens, Greece. If the shape of this project inspires that of a boat, it is no coincidence: the architects took the challenge of building a home to reflect the owner’s passion for yachts.
According to the architects, the bioclimatic concept of the dwelling (discovered on designboom) implements cooling through its contact with water and uses geothermal energy in order to reduce costs, thus making the project Eco-friendly. A generous outdoor terrace provides plenty of leisure space for the inhabitants to relax, while enjoying exquisite nature views in complete privacy. How would you comment on the overall design of this property?
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5 CommentsBespoke Kitchen Design Meeting the Owners’ Flamboyant Nature
We received photos and information about an intriguing kitchen project from Designer Kitchen, a company from Northern Ireland, UK. According to the official press relief, “the brief was to design a timeless kitchen that would provide a dramatic first impression and deliver exceptional value for money. This replacement kitchen design needed to fit into the existing architectural framework as no structural changes were to be made. The client wanted an extraordinary kitchen to express their flamboyant nature. By recycling elements from the original kitchen including the sink and handles; re-fabricating small sections of worktop, consciously separating the design process from manufacturing and tendering the finished design with selected manufacturers, I was able to deliver this kitchen for under £25,000.
The foundation of the design was developed by considering how the uncompromising architecture and fixed cooking position related to five clear approaches to the kitchen. Multiple visual hooks were presented on each sight line. This information was layered onto the functional and social patterns identified as being particular to the family unit which in turn ensured the optimum level of efficiency and visual impact. To optimise the available floor space and avoid architectural “nip points” the island was given a unique radius and angled tail. Unique feature elements where then embedded into the island to enhance functionality and aesthetics.
The design specified in-framed tulip wood, walnut and burr walnut doors with solid walnut dovetailed drawers all manufactured to a bespoke specification. Unique elements included a curved glass display unit with 3D pattern, a feature cone, two elevated drum units and stone clad knee spaces. The varying height of feature elements enhances the impact achieved from the complex mix of materials, geometry and architecture. Lighting provides a holistic element to the design, offering flexibility in an open plan setting and encouraging the feeling of calm”. [Photography: Rory Corrigan RF Creative]
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Leave a commentSanho HyperJuice Plug solves the multiple ipad owner’s power conundrum
One for fun, the other for work? If that’s how you roll with your iPads, then you might be well trained in the art of battery juggling. If, however, you’re not, or you just like to keep things tip-top at all times, then makers of fine accessories, Sanho, have the product for you. The company claims the HyperJuice Plug is the world’s first 15,600 mAh portable battery pack that can recharge a brace of iPads at the same time — complete with retractable wall plug for convenience. It’s not just Apple’s slates, of course, with pretty much all USB gadgets being able to mainline the 15 watts (sharable over two ports) of juice. The HyperJuice Plug launched this week at the Singapore PC show, and lands in six “juicy” colors, yours from an equally juiced up $129.
Continue reading Sanho HyperJuice Plug solves the multiple ipad owner’s power conundrum
Sanho HyperJuice Plug solves the multiple ipad owner’s power conundrum originally appeared on Engadget on Tue, 12 Jun 2012 10:21:00 EDT. Please see our terms for use of feeds.
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Some iPhone 4S owners reporting ominous ‘No SIM card installed’ messages
Could it be that Apple’s latest smartphone is plagued with a troubling design flaw? Just ask the handful of iPhone 4S users who’ve experienced issues with their SIM cards, and they’ll tell you this is very much the case. While we have no reason to believe a majority of iPhone 4S owners are affected, the problem appears to span across numerous carriers and parts of the globe — even Sprint and Verizon Wireless users aren’t immune. Some report resolving the problem with a new SIM card, while others have reason to believe it’s the reader itself. Then there’s a group known as Woo Servers, which suggests the malfunction is related to a short circuit caused by a design flaw with the SIM card tray. They’ve provided a detailed list of instructions to remedy the problem with a simple piece of tape as the cure. Sadly, not everyone seems to benefit from the advice. So, Cupertino, care to lend a hand?
Some iPhone 4S owners reporting ominous ‘No SIM card installed’ messages originally appeared on Engadget on Thu, 17 Nov 2011 18:55:00 EDT. Please see our terms for use of feeds.
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Leave a commentBBM Music gets official for BlackBerry owners lusting after Spotify
Nothing warms our hearts quite like the thought of corporate suits and government workers pumping out the tunes of Iris DeMent and Amy Martin as they scurry throughout their busy days. As we’ve previously speculated, a new service for BlackBerry Messenger — dubbed BBM Music — has now become real official. For $5 per month, users may keep up to 50 songs in their personal library, which is kinda reminiscent of the wistful days filled with 128MB MP3 players. Fortunately, it gets better. A social component allows you to add BBM Music friends, which gives you access to their current 50 songs, too — and serves as a real incentive to grow your social circle. Once you get bored of your jam selection, up to 25 songs per month can be swapped out for new ones, and your current library can be stored locally on the handset. The new service begins today in closed beta for residents of the US, Canada and the UK, but more countries will be added down the road. Curious if yours made the list? Just hop the break for the full PR to find out.
Continue reading BBM Music gets official for BlackBerry owners lusting after Spotify
BBM Music gets official for BlackBerry owners lusting after Spotify originally appeared on Engadget on Thu, 25 Aug 2011 00:01:00 EDT. Please see our terms for use of feeds.
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