Nokia Head Office Sold to Real Estate Investment Firm

Real estate investment firm- Exilion is said to purchase the headquarters building of Nokia. The deal is expected to be fixed for a price of Rs.1218 Cr.

The financial crises of Nokia prompted the leading handset makers to sell their head building at Espoo, in Finland. Nokia faced severe setback from its opponents like Samsung and Apple. The latest reports show that the handset giant has lost its handset market to Samsung.

The set price of the Nokia building is about 170 million Euros (nearly Rs.1218 Cr). The head building is located at Espoo, a city in Finland. Divesting of real estate assets by Nokia is part of their plan to reduce the debts.

Nokia has been operating in this building since 1997 and it will continue to be in operation in this building on a long- term contract basis. The handset makers will be operating in the same building. This selling is only a means to cut short the debt of the company. The sale –procedure is expected to be completed by the end of 2012.

Nokia CFO Timo Ihamuotila expressed that real estate asset is not the real concern for Nokia. He added that it is not their core business. He was speaking about their plans to divest real estate assets.

The Finnish firm Nokia has been operative in this building since 1997. The Building is estimated to have over 48,000 sq. m. of office spaces. The building which is located in Keilaniemi in Espoo was designed by Architect Pekka Helin. Mr. Ihamuotila expressed the company’s content on the outcome.

The Finnish handset makers Nokia has lost its prominence to Samsung. It has been facing strong challenges from other smartphone companies like Samsung and Apple. Yet Nokia was introducing a number of innovative products to regain its lost position. The firm had produced handsets grounded on Microsoft- Windows’ platform.

Nokia had already announced the closing of its facilities in Germany (Ulm) and Canada (Burnaby). They see it as part of their reshuffling procedure. Nokia had sold Vertu, its most luxurious brand to a private equity firm- EQT.

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