EXHIBIT 99(a)
Sotheby's
PRESS RELEASE
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FOR IMMEDIATE RELEASE XXXXX XXXXXXXX
XXXXXXX XXXXXXX
(000) 000-0000
FAX: (000) 000 0000
SOTHEBY'S ANNOUNCES AGREEMENT TO SELL AND LEASE BACK
YORK AVENUE HEADQUARTERS FOR
$175 MILLION
SALE STRENGTHENS BALANCE SHEET
$100 MILLION OF SHORT-TERM DEBT TO BE REPAID
DECEMBER 17, 2002 -- Sotheby's announced today that it has entered into an
agreement to sell its York Avenue headquarters for $175 million to RFR Holding,
LLC. The Company will lease back the building, widely regarded as the best
auction house facility in the world, from RFR Holding for a period of up to 40
years, which includes renewals.
"This is an outstanding opportunity for Xxxxxxx's," said Xxxx Xxxxxxxx,
Xxxxxxx's President and Chief Executive Officer. "The attractive price of $175
million reflects the high asset quality, desirable location and Sotheby's bright
future prospects. Sotheby's, similar to other major corporations, has decided to
enter into a sale-leaseback transaction as a means of financing to provide
long-term liquidity for our business. It will also allow Xxxxxxx's to pay down
$100 million in short-term debt as well as antitrust fines, which strengthens
our balance sheet." Xx. Xxxxxxxx added: "Sotheby's expects to report a gain on
the sale of the building in the range of $25 million, which will be amortized
over the initial term of the lease as required by the relevant accounting rules.
"Sotheby's looks forward to a long and exciting future in our worldwide
headquarters that are without equal in the auction world," continued Xx.
Xxxxxxxx. "After an architectural makeover, which added six floors and
completely redesigned the existing four floors, we have a state-of-the-art
auction facility that has received international acclaim,
particularly for its tenth-floor exhibition space. The renovation and expansion
were designed with Sotheby's unique auction business in mind and ever since it
opened, it has offered us a competitive advantage. All our New York auction
operations are centralized in one convenient location and, importantly, the
building provides permanent exhibition and storage space for each department,
allowing our specialists to `live` with their objects.
"We are delighted at the prospect of a future affiliation with RFR Holding whose
ownership of premier locations, including the Seagram Building and Lever House,
show a clear appreciation for buildings of great quality."
"RFR Holding is delighted to add the Sotheby's Building to our expansive
portfolio of prime Manhattan commercial real estate," said Xxx Xxxxx, Principal
of RFR Holding LLC. "We are privileged to have Xxxxxxx's as our tenant and look
forward to a mutually rewarding long-term relationship."
X.X. Xxxxxx Securities, Inc. acted as exclusive financial advisor to Sotheby's.
ABOUT SOTHEBY'S HOLDINGS, INC.
Sotheby's Holdings, Inc. is the parent company of Sotheby's worldwide live and
Internet auction businesses, art-related financing and real estate brokerage
activities. The Company operates in 34 countries, with principal salesrooms
located in New York and London. The Company also regularly conducts auctions in
13 other salesrooms around the world, including Australia, Hong Kong, France,
Italy, the Netherlands, Switzerland and Singapore. Sotheby's Holdings, Inc. is
listed on the New York Stock Exchange and the London Stock Exchange.
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