Sony is selling its iconic Madison Avenue building its headquarters in the US, in order to raise operating income. The sale of the building, designed by Philip-Johnson in 1984, will be for just over $1 billion and will boost Sony’s figures by $685 million. It previously belonged to AT&T.
The 37 story building in New York will be sold to investors led by the Chetrit Group (who also own Willis Tower in Chicago) although Sony will be permitted to stay in the building for the next three years before having to find somewhere else.
After news of the sale got around overnight, Sony’s shares jumped 12 percent to 1,149 yen in Japan, which is the biggest leap since 2008.
“Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move,” Nicole Seligman, president of Sony Corp. of America, said in the statement.
“Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease.”
The building was bought by Sony for $250 million.