Sony Corporation of America has entered into a contract to sell its US headquarters building to a consortium led by The Chetrit Group and other US real estate markets.

The company, which is a wholly-owned subsidiary of Sony Corporation, disclosed that the sale price for its Madison Avenue property was $1.1bn (approximately £690m) and it was expected that the transaction would close in March 2013.

Both Sony Corporation of America and other Sony businesses will remain in the building for up to three years under a leaseback arrangement with the purchaser.

After repaying debt related to the building and other transaction costs, it is expected that Sony will receive net cash proceeds of approximately $770m.

Sony expects to realise a gain on the sale of approximately $685m to be recorded as operating income.

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