Sony sells its European HQ in Berlin to Morgan Stanley-led consortium

Japanese consumer electronics group Sony is selling its European headquarters in Berlin's Potsdamer Platz to a consortium of US merchant bank Morgan Stanley, Germany's Corpus Sireo and Chicago-based The John Buck Company for an undisclosed amount. Market sources say the trio paid EUR 600 mln, significantly lower than the original asking price of EUR 800-850 mln.

The Tokyo-based electronics giant said that the sale 'was a result of an in-depth review of Sony's current businesses in conjunction with its ongoing global mid-term strategy to focus on core business areas.' The ownership of the property, which was put on the market at the beginning of 2008, will be transferred to the purchasers by the end of March 2008, subject to approval by relevant authorities.

Inaugurated in June 2000 as an innovative urban entertainment complex, the Sony Center encompasses eight buildings with a total 132,500 m² of office, retail, residential and entertainment space. Developed by Sony with its partners Tishman Speyer and Kajima from 1996 to 1999 for EUR 750 mln, the landmark city centre complex attracts more than eight million visitors per year.

In a statement, Sony said that it has reached an agreement with the buyers to retain the name 'Sony Center'. The group will remain as the major tenant in the building with its subsidiaries Sony Europe GmbH, Sony Deutschland GmbH, Sony Pictures Releasing GmbH and Sony/ATV Music Publishing (Germany) GmbH. Other major tenants include pharmaceutical firm Sanosi-Aventis and German rail company Deutsche Bahn.

Freshfields Bruckhaus Deringer has advised Sony Corporation.

In December German car maker Daimler sold the Quartier Potsdamer Platz portfolio to Swedish company SEB Asset Management for an undiclosed amount. The portfolio comprises 19 properties with a total space of about 285,000 m².