REG-Sony Corporation Sony Corporation Announces Sale of “Sony City Osaki” Office Building and Premises<6758.T>

Thu Feb 28, 2013 6:00am EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130228:nBw285577a

http://www.businesswire.com/news/home/20130228005577/en

TOKYO--(Business Wire)--


February 28, 2013 

Sony Corporation Announces Sale of "Sony City Osaki" Office Building and
Premises

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. 

1. Reasons for this sale 

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. 

2. Summary of assets to be sold

 Assets / Location                Selling Price        Book Value         Expected Gain on Sale    Current Status         
 Sony City Osaki                  111.1 billion yen    Approximately      Approximately            In use as an office    
 
(Shinagawa-ku, Tokyo, Japan)                         44 billion yen     41 billion yen           building of Sony       


3. Summary of Buyers 

(1) Buyers 

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.) 

*The name of the Japanese institutional investor is not being disclosed as per
its request. There is no capital, personnel or transaction relationship to be
disclosed herein between (1) such Japanese institutional investor and Sony or
(2) affiliates of such Japanese institutional investor and affiliates of Sony.
In addition, neither such Japanese institutional investor nor its affiliates are
deemed to be a related party of Sony. 

(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      Trade name                                                                                                                                                                       Investment Ratio                                                                                                                           
         (As of December 31, 2012)                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                         Japan Trustee Services Bank, Ltd.                                                                                                                                                                                                                                      1  
                                                                                                                                                                                                                                                                                                                                                                                                6  
                                                                                                                                                                                                                                                                                                                                                                                                .  
                                                                                                                                                                                                                                                                                                                                                                                                9  
                                                                                                                                                                                                                                                                                                                                                                                                %  
                                                                                                                         Trust & Custody Services Bank, Ltd.                                                                                                                                                                                                                                    7  
                                                                                                                                                                                                                                                                                                                                                                                                .  
                                                                                                                                                                                                                                                                                                                                                                                                7  
                                                                                                                                                                                                                                                                                                                                                                                                %  
                                                                                                                         The Nomura Trust and Banking Co., Ltd.                                                                                                                                                                                                                                 5  
                                                                                                                                                                                                                                                                                                                                                                                                .  
                                                                                                                                                                                                                                                                                                                                                                                                6  
                                                                                                                                                                                                                                                                                                                                                                                                %  
 (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.                                                                                                                                                                                         


4. Schedule

 (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    


5. Outlook 

The impact of the sale on Sony`s forecast for consolidated financial results for
the fiscal year ending March 31, 2013 is stated above. 

(For reference) Sony`s consolidate financial forecast for the fiscal year ending
March 31, 2013, which was announced on February 7, 2013, and its consolidated
financial results for the fiscal year ended March 31, 2012 

(Yen in billions)

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


Sony Corporation 

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.