Sony selling US office for $1.1 billion

PlayStation maker agrees to sell 37-story New York City headquarters to investment group, expecting to net $770 million from transaction.

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In an effort to bolster its financial foundation, Sony has agreed to sell its New York City-based United States headquarters for $1.1 billion, the company has announced. The 37-story office is located at 550 Madison Ave and will be sold to an investment consortium led by the Chetrit Group.

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The deal is expected to close by March 2013.

Sony expects the transaction to net proceeds of $770 million after paying debt associated with the building and other various transaction costs. Sony Corporation and its other businesses, including Sony Music Entertainment and Sony Pictures Entertainment, will remain in the building for up to three years.

Sony shares surged on the news, up more than 12 percent to ¥1,149 ($184) at press time.

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