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Sony Corporation (“Sony”) today announced that it has sold its Sony City Osaki office building and premises to Nippon Building Fund Inc. and a Japanese institutional investor. The sale was structured such that Sony placed the office building and premises in a trust and then sold the trust beneficiary rights. Sony and other Sony Group businesses will remain in the building for a period of five years after the sale under a lease agreement entered into separately.
The sale price is 111.1 billion yen. After deducting expenses related to transaction costs, Sony received net cash proceeds today of 110 billion yen. As a result of the sale, Sony expects to realize a gain on the sale of approximately 41 billion yen, to be recorded as operating income, in the fourth quarter of the fiscal year ending March 31, 2013.
As stated on February 7, 2013 in the announcement of Sony’s forecast for consolidated financial results for the fiscal year ending March 31, 2013, Sony has identified certain assets for possible sale as part of an initiative to transform its business portfolio and reorganize its assets. This sale was conducted as a part of that initiative. While this sale was aniticipated and the potential gain on the sale was taken into account at the time of the forecast, Sony is currently reevaluating the aggregate impact of this sale and other factors on the forecast.
Sony is transforming its business portfolio and reorganizing its assets in an effort to strengthen its corporate structure. This sale was conducted as a part of this reorganization.
|Assets / Location||Selling Price||Book Value||Expected Gain on Sale||Current Status|
|Sony City Osaki
(Shinagawa-ku, Tokyo, Japan）
|111.1 billion yen||Approximately
44 billion yen
41 billion yen
|In use as an office building of Sony|
Nippon Building Fund Inc. and one Japanese institutional investor*
(The trust beneficiary rights will be co-owned by Nippon Building Fund Inc. and the Japanese institutional investor, 60% and 40% respectively.）
(2) Summary of Nippon Building Fund Inc.
|(1)||Trade name||Nippon Building Fund Inc.|
|(2)||Address of head office||9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan|
|(3)||Name and title of representative||Tsutomu Nishiwaka, Executive Director|
|(4)||Business||Asset management pursuant to the Act on Investment Trusts and Investment Corporations of Japan|
|(5)||Paid in capital||504,368 million yen (as of February 14, 2013)|
|(6)||Date of establishment||March 16, 2001|
|(7)||Net assets||446,005 million yen (as of December 31, 2012)|
|(8)||Total assets||899,123 million yen (as of December 31, 2012)|
|(9)|| Major investors and their
respective investment ratio
(As of December 31, 2012)
|Trade name||Investment Ratio|
|Japan Trustee Services Bank, Ltd.
Trust & Custody Services Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
|(10)||Relationship with Sony Corporation||Capital relationship||Sony is not an investor in the Buyer. There is no capital relationship between the Buyer and Sony required to be disclosed to herein. There is no capital relationship between affiliates of the Buyer and Sony required to be disclosed to herein.|
|Personnel relationship||There is no personnel relationship between the Buyer and Sony required to be disclosed to herein. There is no personnel relationship between affiliates of the Buyer and Sony required to be disclosed to herein.|
|Transaction relationship||There is no transaction relationship between the Buyer and Sony required to be disclosed to herein. There is no transaction relationship between affiliates of the Buyer and Sony required to be disclosed to herein.|
|Status as a related party||Neither the Buyer nor its affiliates are deemed to be a related party of Sony.|
|(1)||Approval of the contract of sale (by the CEO of Sony)||February 28, 2013|
|(2)||Execution of the contract of sale||February 28, 2013|
|(3)||Closing date of the sale||February 28, 2013|
The impact of the sale on Sony’s forecast for consolidated financial results for the fiscal year ending March 31, 2013 is stated above.
|Sales and operating revenue||Operating income (loss)||Income (loss) before income taxes||Net income (loss) attributable to Sony Corporation’s stockholders|
|Consolidated financial forecast for the fiscal year ending March 31, 2013||6,600||130||150||20|
|Consolidated financial results for the fiscal year ended March 31, 2012||6,493.2||(67.3)||(83.2)||(456.7)|