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Nokia considers selling its Espoo headquarters for an estimated $250 million

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Finnish company struggles to transition

Nokia headquarters
Nokia headquarters

Nokia's recent financial results show the company is clearly struggling to transition over to Microsoft's Windows Phone operating system, with CEO Stephen Elop admitting that Nokia "would have liked to have done better" with its initial Lumia devices. As part of the company's transition, Nokia has been shaking up its leadership team, cutting jobs, and relocating some of its device assembly lines. The Finnish firm is now considering a sale of its headquarters in Espoo.

Reuters reports that the sale would be part of a drive to dispose of non-core assets. "We are evaluating different options for non-core parts, such as real estate holdings, and that includes the headquarters," says a spokesperson for Nokia. Although Nokia could sell the property, it doesn't mean that the company would necessarily relocate. Finnish site Helsingin Sanomat quotes Nokia's Timo Ihamuotila as stating that the company "do not have any plans to move the headquarters."

"We do not have any plans to move our headquarters."

Nokia previously announced plans to streamline its IT, corporate, and support functions, alongside the closure of its manufacturing facility in Salo, Finland. The latest move could provide some much needed cash to help Nokia through its transition, with Finnish newspaper Iltasanomat estimating the headquarters value at around 200-300 million euros ($258-386 million). The sale would represent around a quarter of Nokia's Q2 total operating loss of €826 million (around $1 billion). Ratings agencies have previously downgraded Nokia to junk status, making it increasingly difficult for the company to acquire credit at reasonable rates. Nokia will be hoping that it can hold on and transition to Windows Phone fully before having to take any more drastic cost cutting exercises.

Update: A Nokia spokesperson has confirmed to us that the firm has no plans to move its headquarters, hinting it would likely lease the building back. "Nokia is re-evaluating all non-core operations, including its real estate," says a company spokesperson. "As with most companies whose core business is not in owning real estate, it makes common business sense not to tie assets in real estate property but rather invest and focus in its core operations."