Sony Sells US Headquarters
Sony has agreed to sell its U.S. headquarters to a consortium of buyers for € 685 million ($1.1 billion). The buyers are led by The Chetrit Group - a Manhattan-based owner of commercial properties in New York and other major U.S. markets.
The idea's simple. Sony sells the building for a nice profit then rents back the office space. It's similar to what Nokia(NOK) recently did with its headquarters building in Finland. Sony expects to pull $770 million in net cash out of the deal, of which $685 million, will go down as operating income which should help them attain a profitable third quarter, later this year.
While, in London, Google(GOOG) has reportedly spent nearly the same amount, 650 million UK pounds ($1.04 billion), on a plot of land for a new headquarters complex.
According to Reuters, the Internet giant plans to consolidate a number of separate office spaces into one new building in the Kings Cross area of the city. It's interesting to note that Google just completed a major renovation of its current London office space in Mayfair.
Construction of Google's new complex is expected to begin later this year and is projected to cost 1 billion UK pounds ($1.6 billion). The Mountain, View, Calif.-based firm hopes to move its UK operations there by 2016.
--Written by Gary Krakow in New York.
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