Deborah D. McAdams /
02.28.2013 10:02 AM
Sony Corp. Announces Sale of Sony City Osaki Office Building and Premises
Net proceeds of $446.5 million expected
TOKYO-- Sony Corp. today announced that it has sold its Sony City Osaki office
building and premises to Nippon Building Fund Inc. and a Japanese
institutional investor. The sale was structured such that Sony placed
the office building and premises in a trust and then sold the trust
beneficiary rights. Sony and other Sony Group businesses will remain in
the building for a period of five years after the sale under a lease
agreement entered into separately.
The sale price is 111.1 billion yen (US $1.21 billion in today’s exhange rates). After
deducting expenses related to transaction costs, Sony received net cash
proceeds today of 110 billion yen (US $1.198 billion). As a result of the sale, Sony
expects to realize a gain on the sale of approximately 41 billion yen (US $446.5 million),
to be recorded as operating income, in the fourth quarter of the fiscal
year ending March 31, 2013.
As stated on Feb. 7, 2013 in the announcement of
Sony’s forecast for consolidated financial results for the fiscal year
ending March 31, 2013, 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 aniticipated 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.
The sale was conducted as
a part of a corporate reorganization.