Sony has agreed to sell its U.S. headquarters to real estate company Cherit Group for around $1.1 billion.

Sony has said that it expects the sale of the building to generate $770 million in net cash after debt repayment. Its various divisions currently housed in the building will be allowed to remain for up to three years following the sale.

“Given the opportunities and challenges in the current economic and real estate landscape, selling 550 Madison now is a timely and logical strategic move,” said Sony Corp. of America president Nicole Seligman. “Regarding our new headquarters, we continue to look at a number of spaces in Manhattan but have not yet made a decision about where to lease.”

Source: Bloomberg