Readers Digest Website - January 23, 2004
The Reader's Digest Association, Inc. (NYSE: RDA) Board of Directors today approved a proposal by the company's management to pursue the sale and partial leaseback of its corporate headquarters in Chappaqua, New York. Under the plan, the company intends to offer the facility for sale as part of a leaseback arrangement with a term of at least 20 years. The space retained by the company would be designed to accommodate its current headquarters workforce of about 800 employees. The company plans to retain Cushman & Wakefield to market the facility.
The company currently requires less than half of its available office space, although it pays to maintain the entire facility. The campus has 690,000 square feet of usable space on 114 acres. The company expects that a sale would result in a significant cash transaction, a one-time gain and an ongoing reduction in maintenance and other operating costs beginning in Fiscal 2005. The historic headquarters was built in 1939 and has been home to Reader's Digest for 65 years.
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Friday, January 23, 2004
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