Electronics Pioneer, Sony Corp. is geared up to sell its U.S. headquarters located at 550 Madison Avenue. The deal is expected to be sealed at $1.1 billion.
Sony listed the building through real estate firm, Eastdil Secured LLC, in late 2012. Many bidders came forward and the potential buyers' list has been narrowed down to 20, reports Wall Street journal.
The list of final bidders includes- Thor Equities, a popular New-York based realty firm, Mitsui Fidosan Co., a Japanese investing firm and another NY based real estate firm, Chetrit Group. Sony has agreed to sell the building to a consortium of investing firms, which is led by The Chetrit Group, reports Manila Bulletin.
"As we had hoped, there was great interest in this iconic building. 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, told The Wall Street Journal.
The deal is expected to be finalized by March, 2013, reports Fox Business.
The building is a 37 story structure that was designed by famous architect Philip Johnson. The building was originally constructed in 1984 for The American Telephone and Telegraph Company, which Sony bought in 2002.
The deal for the building is a huge gain for the company as Sony has been going through a rough pach financially this year. The company will also be selling off a building in Tokyo as a cost-cutting measure, reports Wall Street Journal.
Madison Avenue property prices are hitting new highs as commercial and retail real estate is picking up in the country. In order to gain a return on the huge investment, the consortium of buyers are expected to convert part of the building into residential or hotel space and add some retail space to it as well.
Sony is expected to move base from the building in the next three years, reports WSJ.
