Nokia is about to add roughly $220 million to its balance sheet through the sale of its central HQ building in Espoo, Finland. The company will continue to operate within the premises as previously, but it'll be on the basis of a new long-term lease, rather than as the outright owner.
The 170 million euro paid for Nokia's offices by Finland-based Exilion is below earlier estimates for how much Nokia could raise from the sale. Still, the lower price could be tied to a sweeter deal on the lease that Nokia has prearranged in order to remain in its home for the long term. The sale is expected to be concluded before the end of this year. In explaining the move, Nokia's CFO Timo Ihamuotila had the following to say:
"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."