Nokia selling off their headquarters in Espoo, Finland

This can be filed under a rumor but looks like it came from a notable source, so could be true too.  Reports state that Nokia is in the process of selling their headquarters in Espoo, Finland. It is known that Nokia has been cutting on costs. This move could be quite shocking as this building has come to represent the company in many ways.

Previously Nokia mentioned that selling of property could be part of company restructuring and cost savings. But selling the building, appeared to be last resort. The company won’t necessarily have to sell the property, they could just have to be renters instead of owners. This step by the company could demonstrate the severity of on-hand cash to the investors.

The glass and steel building is worth 200-300M pounds or 258-387M US dollars according to a report by Finnish newspaper. Spokeswoman Maija Taimi told Reuters that Nokia has been evaluating different options for non-core parts, such as real estate holdings and headquarters.  Nokia has been cutting on its expenses to improve its finances by job cuts and other measures, selling properties could also be a part of improving its finances. Finnish newspaper Helsingin Sanomat reported that Nokia plans to sell its headquarters in an attempt to meet cost targets over next 12 months.

Selling th building does not necessarily mean Nokia would be leaving Finland. Nokia had stated that moving the company abroad was not a consideration. It is also possible that Nokia would remain an Anchor tenant in the complex after the sale of the building.
What is evident is that Nokia is trying to pare down costs at every corner. Next to employees, physical infrastructure is typically a company’s next biggest expense; probably that is why Nokia is planning on selling its building. Such infusion of cash that will come with the building sale will surely help the struggling company.

All we can do now is to wait and see if this Finnish mobile company really makes these rumors true. If it really does so, the big question is where the company would shift to after selling its building.

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