Nokia Sells off Headquarter’s Building-Why?

 

Finnish mobile phone maker Nokia, which faces cash-flow problems, said on Tuesday it had agreed to sell and lease back its head office building outside Helsinki for 170 million euros ($222 million).

In October, the company said it was looking to sell its head office building, named “Nokia House”.

The glass-and-steel waterfront structure was built in the town of Espoo in the 1990s.

The building has been sold to Finnish real estate company Exilion in a transaction to be completed by the end of the year, Nokia said.

According to the article in times of india-“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,” Nokia’s chief financial officer, Timo Ihamuotila, said in a statement.

“We are naturally continuing to operate in our head office building on a long-term basis,” he added.

Nokia, which has been trying to improve its finances through large job cuts and other measures, told investors in July it was it was also looking to sell properties.

“Well what is Nokia up to?, Are these measures for investing in some secret project which will change the fate of Nokia, well we can just wait and watch what new surprise Nokia is going to give. “

Source :Reuters

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