AMD leasebacks campus for extra cash as it debuts 'Richland' APUs

Summary:AMD must be looking for extra cash because the processor maker just announced it is going to leaseback its Austin campus.

AMD has inked a deal to sell and leaseback its offices in Austin, Texas for approximately $164 million in cash.

Dubbed the "Lone Star Campus," the Sunnyvale, Calif.-headquartered company is working with real estate investment company Spear Street Capital and entering into a 12-year lease with an extension option to continue operations on the Texas campus.

The transaction is expected to close on or around March 26. The proceeds from the deal is slated to appear in the microprocessor maker's first quarter earnings report on April 18.

AMD executives asserted in the announcement that the sale is simply keeping in line with "the company's strategy to reduce investments and capital in non-core parts of the business, including real estate."

For example, AMD actually already sold its Sunnyvale campus back in 1998 and has been leasing-back those offices since then.

AMD chief financial officer Devinder Kumar also explained in prepared remarks that this sale should "unlock a significant amount of capital, while the multi-year lease back of our Austin campus reconfirms our long-term commitment to the city that so many AMD employees have called home since 1979."

The news of the leaseback comes on the same day that AMD has announced the first availability of its new APU series, Richland.

Designed to offer more lifelike gaming and entertainment, some of the key aspects to the new Richland series include facial recognition login, gesture controls by leveraging a webcam, and steadying features to improve streaming video quality.

Rolling out across only select regions at the moment, here's a rundown on the model numbers and performance levels for "traditional" laptops from the Richland APUs:

zdnet-amd-richland-apu

More low-voltage and desktop variants of AMD's Elite A-Series APUs are expected to be announced and ship by the end of the first half of 2013.

Screenshot via AMD

Topics: Hardware, Enterprise 2.0, Processors, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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