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Nokia will sell then lease Espoo headquarters to raise cash

News by Andrew Kameka on Tuesday December 04, 2012.

industry news · andrew kameka

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Nokia today announced that it will sell its head office building in Espoo, Finland for 170 million EUR (US $222 million). Nokia won't need to contact any moving companies because it has agreed to lease back the property. The transaction, which Nokia expects to complete by the end of the month, will raise cash for the struggling company without it having to sell off any vital assets. Nokia has taken a beaten in recent financial reports, and the company has turned to job cuts and selling offices as a way to offset losses.

CFO Timo Ihamuotila released the following statement to explain the deal:

"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome. As we have said before, owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets. We are naturally continuing to operate in our head office building on a long-term basis."

source: Nokia

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Andrew Kameka
Andrew is based in Miami, Florida.

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