Sony Corporation of America Announces Sale of 550 Madison Avenue Building

  Sony Corporation of America Announces Sale of 550 Madison Avenue Building

PR Newswire

NEW YORK, Jan. 17, 2013

NEW YORK, Jan. 17, 2013 /PRNewswire/ --Sony Corporation of America ("SCA"), a
wholly-owned subsidiary of Sony Corporation ("Sony"), today announced that it
has entered into a contract to sell its U.S. headquarters building, located at
550 Madison Avenue in New York City, to a consortium led by The Chetrit Group,
a New York-based owner of commercial properties in New York City and other
major US real estate markets.

(Photo: http://photos.prnewswire.com/prnh/20130117/NY44753 )

The sale price is $1.1 billion, and it is expected that the transaction will
close in March 2013. SCA and other Sony businesses (including Sony Music
Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment,
among others) will remain in the building for up to three years under a
leaseback arrangement with the purchaser.

After repaying debt related to the building and other transaction costs, it is
expected that Sony will receive net cash proceeds of approximately $770
million. Sony expects to realize a gain on the sale of approximately $685
million to be recorded as operating income.

Sony is currently reevaluating its forecast of the consolidated financial
results for the current fiscal year ending March 31, 2013 to take into account
this sale and other factors that might affect such forecast.

Eastdil Secured advised Sony on this transaction.

1. Reasons for this sale
Sony is undertaking a range of initiatives to strengthen its financial
foundation and business competitiveness and for future growth. At the same
time, Sony is balancing cash inflows and outflows while working to improve its
cash flow by carefully selecting investments, selling assets and strengthening
control of working capital such as inventory. This sale is made as a part of
such initiatives.

2. Summary of assets to be sold

Assets / Location         Selling Book Value    Gain on Sale   Current Status
                          Price
Headquarters building of
Sony Corporation of                                            Headquarters of
America                   $1.1    Approximately Expected to be Sony
                          billion $174 million  approximately  Corporation of
(at 550 Madison Avenue in                       $685 million   America
New York City, the United
States of America)

3. Summary of Sony Corporation of America

Trade name                       Sony Corporation of America
Address of head office           550 Madison Avenue, New York, NY 10022, the
                                 United States
Name and title of representative Michael Lynton, CEO
Business                         Management of Sony Group's businesses in the
                                 U.S.
Stated capital                   $11,316.7 million

4. Summary of Buyer

Trade name             550 Madison Fifth LLC
Address of head office c/o The Chetrit Group, LLC, 512 Seventh Avenue, New
                       York, NY 10018, the United States
Contact Information    c/o The Chetrit Group, LLC, attention: Jacob Chetrit
Purpose of             Special purpose entity to own real estate
incorporation
Jurisdiction over      A limited liability company established under the law
incorporation          of the State of Delaware
Date of incorporation  January 15, 2013
                       A consortium led by The Chetrit Group, a New
Summary of investors   York-based owner of commercial properties of various
                       property types in New York City and other major US real
                       estate markets
                                             Sony is not an investor in the
                                             Buyer. There is no capital
                                             relationship between the Buyer
                       Capital relationship  and Sony required to be referred
                                             to herein. There is no capital
                                             relationship between affiliates
                                             of the Buyer and Sony required to
                                             be referred to herein.
                                             There is no personnel
                                             relationship between the Buyer
                       Personnel             and Sony required to be referred
Relationship with Sony relationship          to herein. There is no personnel
                                             relationship between affiliates
Corporation                                  of the Buyer and Sony required to
                                             be referred to herein.
                                             There is no transaction
                                             relationship between the Buyer
                                             and Sony required to be referred
                       Transaction           to herein. There is no
                       relationship          transaction relationship between
                                             affiliates of the Buyer and Sony
                                             required to be referred to
                                             herein.
                       Status as a related   Neither the Buyer nor its
                       party                 affiliates are deemed to be a
                                             related party of Sony.

5. Schedule

    Approval of the contract of sale
(1)                                   January 18, 2013 (Japan Time)
    (by the CEO of Sony Corporation)
(2) Execution of the contract of sale January 17, 2013 (EST)
(3) Expected closing date of the sale March 15, 2013

6. Outlook
As mentioned above, Sony is currently reevaluating its forecast of the
consolidated financial results for the current fiscal year ending March 31,
2013 to take into account this sale and other factors that might affect such
forecast.

(For reference) Sony's consolidated financial forecast for the fiscal year
ending March 31, 2013, which was announced on November 1, 2012, and its
consolidated financial results for the fiscal year ended March 31, 2012

(Yen in billions)

                                 Sales and Operating Income Net income (loss)
                                           income    (loss) attributable to
                                 operating           before Sony Corporation's
                                 revenue   (loss)    income stockholders
                                                     taxes
Consolidated financial forecast
for the fiscal year ending March 6,600     130       150    20
31, 2013
Consolidated financial results
for the fiscal year ended March  6,493.2   (67.3)    (83.2) (456.7)
31, 2012

About Sony Corporation of America:

Sony Corporation of America, located in New York, NY, is the U.S. headquarters
of Sony Corporation, based in Tokyo, Japan. Sony's principal U.S. businesses
include Sony Electronics Inc., Sony Mobile Communications (USA) Inc., Sony
Computer Entertainment America LLC, Sony Network Entertainment Inc., Sony
Pictures Entertainment Inc., Sony Music Entertainment, Sony/ATV Music
Publishing LLC, and Sony Online Entertainment LLC. With some 900 million Sony
devices in hands and homes worldwide today, a vast array of Sony movies,
television shows and music, and the PlayStation Network and the Sony
Entertainment Network, Sony creates and delivers more entertainment
experiences to more people than anyone else on earth.

Sony recorded consolidated annual sales of approximately $79 billion for the
fiscal year ended March 31, 2012, and employs 162,700 people worldwide.

SOURCE Sony Corporation of America

Contact: SCA Contact: Jim Kennedy, +1-212-833-8823, Jim_Kennedy@sonyusa.com
 
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