SAN FRANCISCO—Advanced Micro Devices Inc. (AMD) wants to sell its campus in Austin, Texas, and lease the facility back from a commercial real estate investor in an effort to raise cash, a company spokesperson said Tuesday (Nov. 27).
In an email exchange, the spokesperson said AMD intends to take advantage of "favorable economic conditions in the Austin Southwest office submarket" by offering the company's "Lone Star" campus for sale to reputable commercial investors, contingent on a multi-year leaseback deal.
"AMD’s management team believes this is a good business decision that is supportive of the company’s long term corporate strategy by enabling AMD to generate capital to apply to its business operations, as opposed to having it locked in real estate," the spokesman said.
More than 2,000 AMD employees work at the Austin campus. It is the company's single largest site in terms of number of employees.
The spokesman said AMD expects the 58-acre campus site to fetch $150 million to $200 million.
With a multi-year leaseback deal, AMD plans to remain a long-term tenant at the campus, the spokesman said. The action is expected to have no impact on employees or operations, the spokesman said.
AMD last month announced it would cut its workforce by about 15 percent after reporting a net loss of $157 million on sales of $1.27 billion.