Sony Corporation (NYSE:SNE) announced that it has sold its Sony City Osaki office building and premises to Nippon Building Fund Inc. (TYO:8951) and a Japanese institutional investor. The company also announced that the premises were sold for 111.1 billion yen ($1.2 billion). Sony has sold this office as a part of restructuring plans.

Sony City Osaki Office Building

Sony and its group will continue to operate from the building for the next five years after the sale under a lease agreement, which was inked separately.

Sony Corporation (NYSE:SNE) received 110 billion yen after deducting expenses related to the transaction costs. The Playstation maker seeks to take gain around 41 billion yen (440 million) from the sale, which will be posted in its quarter 4th financials, due on 31st March 2013.

The building has 25 storey’s and has staffing capacity of 5,000 employees. Most of the employees in here work on its TV and audio business.

“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,” an announcement read.

The deal for selling its Tokyo office comes just a month after the company sold its office in New York for $1.1 billion as a part of its plan to restructure. The company also announced that it will trimming of 1000 jobs and the relocation of its Global headquarters back to Tokyo.

Like Sony, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) has also followed the strategy of selling and releasing its premises. Nokia sold its Oulu campus for $40.8 million earlier. The company prior to this has already sold its Espoo headquarters for €170 in December. Sony stated that it will look forward to selling certain assets as a part of restructuring initiative to make over its business portfolio and reorganize its assets.

For the third Quarter of 2012, Sony Corporation (NYSE:SNE) posted revenue of $20.84 billion, but along with that suffered a loss of $115 million. The company is still looking forward for its turnaround strategy to work.

In the third Quarter result, this sale was anticipated and the gains were taken in to account. However, the company is re-evaluating the total impact of this sale and certain other factors on the forecast.

Summary of the Asset sold

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