In efforts to consolidate its workers into a single location and free up some capital, McKesson plans to sell its headquarter building in San Francisco and lease back a portion of it for its office space, reports San Francisco Business Times.
McKesson has owned the full building since 2012, prior it owned a 50 percent stake of the building when it was built in 1969, according to the report.
Now, a source familiar with the building told San Francisco Business Times McKesson thinks now is an attractive time to sell, as San Francisco's investment market is reaching record-high activity. The source indicated the building could sell for more than $300 million.
Once McKesson sells the building, it plans to lease the majority of it, allowing for the company's headquarters to remain where they currently are. The company plans to consolidate workers from other San Francisco offices into the one building, totaling approximately 1,200 employees. Once all the workers are located in the building, approximately 25 percent of the building space will be vacant, according to the source.
There is no indication of what McKesson's rent would be, according to the report.
"The sale-leaseback is a strategic opportunity to free up a significant amount of capital. We will invest these resources back into our employees and our customers, and continue our focus on driving shareholder value," Mike Huaco, senior vice president of corporate real estate at McKesson, said in a statement, according to the report.
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