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. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV