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ISLANDIA, NY-CA Inc. has entered into an agreement to sell its Islandia, NY headquarters for $204.3 million in cash and lease back the offices for 15 years, according to an 8-K documents filed earlier this week. CA, formerly known as Computer Associates, will pay about $1.3 million per month in rent, according to published reports.

The deal is with two Delaware LLC companies–Island Headquarters Operators and Islandia Operators, and will allow the firm to renew the lease for a total of 35 years, CA says. The property is located at One CA Plaza, Islandia. The software firm last week unveiled plans for a 10% reduction in work force, or about 1,700 jobs. The company says it expects the cuts to save $200 million in two years. Also among the restructuring is the first phase of a $2 billion stock buyback, saying it would buy the first $1 billion with cash and bank financing.

“As we’ve stated before, CA is constantly evaluating its cost structure to ensure it is making the most effective investment decisions and delivering strong returns on invested capital,” a CA spokeswoman tells GlobeSt.com via email. “CA decided to move forward with the sale-leaseback of the Islandia facility as one of the many options in this arena. Leasing office space is standard business practice and frees up capital that can be used for other corporate purposes.

“CA signed a long term lease for the Islandia facility and remains committed to Long Island,” she says. “We continue to have a very large presence in Islandia with more than 2,000 employees.”

Recent financials show CA seeing a 64% drop in fiscal first-quarter earnings to $35 million, or 6 cents a share; however, adjusted earnings were $104 million, or 17 cents in the quarter ended June 30, beating Wall Street estimates of 13 cents. CA has a market cap of $13.49 billion. In late-morning trading, CA was down $.15 at 23.62.

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