Sony is about to flog off its skyscraper on Madison Avenue to the Chetrit Group, a major family-owned New York property outfit for $1.1 billion.

Sony said the sale was to raise much-needed cash, expected to equal $770m, after bills on the building have been pay off. The firm will also record a windfall profit in its accounts, as the building is being sold at a gain of £685m, compared with the price that Sony originally paid for it in 2002.

The company will not be moving out of the building.  Apparently it will continue to lease the building back for another three years following the sale. The company has 1,500 Sony employees working in the building, including its music and films businesses.

The 37-floor building was first constructed in 1984, at a time when Sony was worth a lot of dosh thanks to the success of its  Walkman. In November, Sony suffered the ignominy of having its credit rating downgraded to "junk" because the company had serious doubts about whether Sony will be able to repay its debts.