McGraw-Hill Completes Sale Leaseback of Rockefeller Center HQ

NEW YORK, December 29, 2003 /PRNewswire-FirstCall

The McGraw-Hill Companies (NYSE: MHP - News) announced today that it has sold its 45% interest in Rock-McGraw, Inc., which owns the Corporation's headquarters building at 1221 Avenue of the Americas, New York City, to SL Green Realty Corp. (NYSE: SLG - News) in a transaction valued at $450 million for its 45% interest.

The Corporation will remain an anchor tenant of what will continue to be known as The McGraw-Hill Companies building and will continue to lease space from Rock-McGraw, Inc. under an existing lease for the next 17 years. The Corporate headquarters offices and two of its businesses, BusinessWeek and Standard & Poor's Corporate Value Consulting, remain at the Rockefeller Center location. In line with this strategy, The McGraw-Hill Companies has long-term leases, rather than ownership interests, at many of its major offices, including 2 Penn Plaza and 55 Water Street in New York City and its new London headquarters at Canary Wharf.

As a result of this sale, the Corporation expects to record a gain of approximately $131 million ($58 million after-tax) during the fourth quarter of 2003. Pursuant to sale-leaseback accounting rules, a gain of approximately $212 million ($126 million after-tax) will be deferred and amortized over the remaining lease term largely as a reduction in rent expense. The Rockefeller Group maintains its 55% ownership of Rock-McGraw, Inc., and will continue to manage the building. Sphere: Related Content