NY Times to sell part of its building

In an effort to raise more cash and pay off some of its debt, The New York Times revealed today that it is in negotiations to sell a large part of its 52-story headquarters in Manhattan.

Under the deal, the Times Company would sell the 19 floors it currently uses in the building but not the 6 floors it leases to other tenants. The Times Company would continue to occupy and manage its floors and would have the right to buy back the space at a predetermined price when a 10-year lease expires.

W.P. Carey and Company, an investment and management firm, will be purchasing the space. The Times will be able to purchase the space back at the end of the lease if it so chooses.
The deal, in addition to the $250 million loan The Times acquired from Mexican billionare Carlos Slim Helu, will help the paper as it seeks to pay off its considerable debt.

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