Technology content trusted in North America and globally since 1999
8,189 Reviews & Articles | 61,946 News Posts

Nokia selling headquarters, then leasing it back from the buyer

Nokia selling its headquarters for an estimated 170 million euros just to lease it back again
By: Trace Hagan | Business, Financial & Legal News | Posted: Dec 5, 2012 2:01 am

Nokia still isn't doing well when it comes to cash. Their new line of Lumia Windows 8 Phones are selling well, but the company is still burning through cash. The company has decided to sell its headquarters in Finland to Exillion for around 170 million euros. Nokia will then lease the property back from the company.




Timo Ihamuotila, Nokia's CFO:


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.


Nokia is interested in focusing on core parts of its business, which, apparently, doesn't include owning land. The move is one of cost cutting, and in this case, they will be getting an inflow of cash, but will have to pay to lease the property back from the company. There is good news on the horizon, though, as it appears that Windows Phone is picking up steam as a platform.


Related Tags

Got an opinion on this news? Post a comment below!