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Nokia sells headquarters for 170 million euros

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Nokia HQ
Nokia HQ

In the wake of recent financial worries, Nokia has confirmed that it is to sell its longstanding headquarters in Espoo, with the Finnish phone manufacturer to lease back the premises from the new owner.

Shifting its head office building in its native Finland, Nokia has announced that it expects to close a deal by the end of the year with Finnish firm Exillion reportedly set to part with 170 million euros (£137.8m) in order to snap up the high-profile real estate. In finalising the deal, Nokia has confirmed that it has secured a long-term lease that will see it occupy the premises for a number of years to come.

Despite having operated in the 48,000 square metre, Pekka Helin designed building since 1997, Nokia has suggested that the sale is not due to financial restrictions, but because “owning real estate is not part of Nokia’s core business.”

"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome,” Nokia CFO Timo Ihamuotila said. “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.”

He added: “We are naturally continuing to operate in our head office building on a long-term basis."

The sale, which comes just months after Nokia revealed it was looking to sell its headquarters, follows on from a period of declining sales that has seen the company lose its billing as the world’s largest mobile phone manufacturer.

Having failed to gain firm footing in the rapidly expanding smartphone market, Nokia recently ditched its native Symbian OS in favour of the new Windows Phone offerings with the Nokia Lumia 800 and Nokia Lumia 920 lining up as some of the most desirable Windows Phone 7 and Windows Phone 8 brimmed handsets to date.

Although recent Nokia rumours have suggested that the former handset leader is currently working on its first Nokia Android smartphone, company executives have rubbished the claims, taking to Twitter to refute the reports.

Do you still see Nokia as a key player in the smartphone race or are you of the impression that the Finnish phone manufacturer has dropped behind the crowd? Share your thoughts on the matter with us via the Trusted Reviews Twitter and Facebook feeds or through the comment boxes below.

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