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Singed by accumulated losses and a rather gloomy scenario for electronics manufacturing, global electronics major Sony Corp. is selling assets and cutting jobs for a turnaround of its business. T

he global major's wholly-owned unit Sony Corp. of America (SCA) is now selling its 37-story New York headquarters to investors led by the Chetrit Group for $1.1 billion. The sale is expected to close in March. Reports indicate the deal will fetch Sony net cash proceeds of about $770 million after it meets the debt tied to the Madison Ave. building and other transaction costs.

"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, said in a statement,

The building has 825,000 square feet and a 30,000-square-foot annex.

"Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease," he added.

Sony said today that SCA and other Sony businesses, including Sony Music Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment, would remain in the building for up to three years under a leaseback arrangement with the buyer.

The moot question is whether Sony will use these proceeds to develop more innovative products and compete with other majors in the global markets. Some time back the company had predicted a $223 million (20 billion-yen) profit for the year ending March 31. With this deal, the company might re-evaluate its forecast for the year. Eastdil Secured advised Sony on the sale.

For the record, the Chetrit Group, led by Joseph Chetrit, is co-owner of Willis Tower in Chicago, North America's tallest building. In August 2011.