After Nokia first sold its headquarters in Finland, now it’s Sony’s turn to start selling out core assets for cash. Unlike Nokia however which sold its homebase in Espoo, Finland, Sony is selling the building where its U.S. office resides, not their main Tokyo HQ.

Sony will sell the 37-story headquarters in New York City for around $1.1 billion to an investor group headed by Chetrit.

Overall, the sale should yield Sony $770 million in cash, a big injection for the struggling company. The Japanese electronics maker said it will continue leasing the space in the next three years.

Chetrit Group, the buyer, also owns the famous 108-story Willis Tower (often referred to as the Sears Tower).

As to the building Sony is selling right now, it is located at 550 Madison Avenue, and until 2002 was owned by AT&T. The Japanese company bought it for $236 million.

"Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move," Sony Corporation of America President Nicole Seligman said in the statement, according to Bloomberg.

The sale of Sony's assets is a longtime coming. The company has struggled over the past few years with increased competition and sluggish television sales. Along with getting rid of many of its assets, Sony is also cutting 10,000 jobs. The company is also reportedly looking to sell its Tokyo building for between $1 billion and $1.5 billion.

After paying back debt related to its Madison Avenue building, Sony plans to keep around $770 million from this sale.

"Sony is undertaking a range of initiatives to strengthen its financial foundation and business competitiveness and for future growth," the company said in a statement. "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."

While Sony is selling 550 Madison, several of its businesses -- including Sony Music Entertainment, Sony/ATV Music Publishing, Sony Pictures Entertainment, and others -- will stay in the building for the next couple of years.

The deal between Sony and The Chetrit Group is expected to close in March.

Sony’s credit rating was cut three levels to BB-, a non- investment grade, by Fitch Ratings in November. Slumping demand for TVs and weakened economic conditions at home and overseas will leave the electronics maker struggling to regain technological leadership, Fitch said at the time.
Sony raised 150 billion yen by selling five-year convertible bonds in November, its first offering of similar securities since 2003. The inventor of the Walkman is cutting 10,000 jobs and trying to turn around its TV-making unit, which is headed for a ninth straight year of losses. Sony lost about 31 percent of its market value last year.
“The biggest goal for Sony this fiscal year isn’t growth, but to be in the black,” said Hideki Yasuda, an analyst at Ace Securities Co. in Tokyo.