Thursday, March 19, 2009

Before Citi Is Forced To Move Its HQ To Weehawken

Nothing like the threat of little public lynching to get transparency...
For Immediate Release
Citigroup Inc. (NYSE: C)
March 19, 2009

Citi Clarifies Media Reports about Office Consolidation

New York - In response to numerous misleading media reports regarding the office consolidation at Citi's global headquarters at 399 Park Avenue, Citi issued the following points of clarification:

* The consolidation of our executive headquarters at 399 Park Avenue is part of an ongoing global effort to substantially reduce expenses.

* Over the last two quarters, reported premises and equipment expenses are down by $100 million, and Citi expects to realize significantly more savings in 2009.

* Globally, office density will be 120 usable sq. ft. per person by the end of 2009, down from 132 usable sq. ft. per person currently.

* The consolidation of the executive headquarters at 399 Park Avenue is part of the global cost savings initiative and will result in the reduction of space on the executive floors by 50%, going from two floors to one and subleasing the remaining space.

* This consolidation and subsequent costs are for all executive office space at 399 Park Avenue, not just the CEO's office.

* Citi is doubling the overall occupancy rate on the remaining floor at 399 Park Avenue by creating smaller offices, increasing work station to office ratios, and by utilizing alternative work strategies.

- Occupancy on the remaining floor goes to 177 from 89 currently.

* The 399 Park Avenue office space consolidation, through densification and sublease, is estimated over the life of the lease to net $20 million in savings, an amount well in excess of the project costs. This estimate is based on conservative assumptions regarding the price and timing of the sublease.

* This consolidation is about cost savings and anything reported to the contrary is misleading.

Premises and Equipment Expenses

Q208 Q408
$1.834 B $1.737 B

(Source: Citi 4Q08 Financial Supplement)

Total Global Real Estate Space (million square feet)

Q208 Q408 Projected Q409
100.2 94.3 83.9

Selected 2008/2009 Site Dispositions (New York City only)

Square Feet

250 West Street: 371,625
77 Water: 94,252
731 Lexington Ave: 176,030
333 W. 34th: 338,411
787 Seventh Ave: 270,311
Citigroup Center: 175,076
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Sam said...

I cannot believe the times we live in. A company like Citi having to justify $10m in spending and having to put out press releases pre-emptively.

Wall St has indeed changed for the better!

Anonymous said...

Wait a minute! Aren't we supposed to be spending money to stimulate the economy? I could have sworn I heard Christina Romer saying that we need to go out and buy cars............

Does it really who spends money on what?

Anonymous said...

Ahhhh. Isn't that great. A press release showing that Citi is watch every little penny spent.

Oh hum....... I'm really a fu*king true believer! Please post more ballshat.

Anonymous said...

I'm starting to think that you are a carefully orchestrated PR machine hired to spin....

Any truth to that "Tyler"? What are they paying you?


Anonymous said...

Do you feel me "Tyler"? Scoop a few relevant stories to improve SEO results.

Then plant the spin....

Love & kisses,


Tyler Durden said...

you got me. and for a few extra $$$ i will spin carefully and orchestratedly anything you ask me to.

Anonymous said...

Yea, OK! Ha! Good laugh!


Anonymous said...

they are filming a movie with angelina jolie right by the citibank building; i wonder if she is going to storm in and adopt all the toxic assets

Anonymous said...

Who gives a shat about angelina jolie? Except for you dum-dumb! Why don't you go adopt a brain!

Anonymous said...

Densification ... now that's a word I can get behind.