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Nokia Corporation Message Board

  • rawdy@rocketmail.com rawdy Feb 12, 2013 8:27 AM Flag

    More cash $42.5 million

    Nokia sells Oulu campus for €31.7 million

    Summary: As part of the handset maker's restructuring efforts, Nokia has sold its Finnish Peltola, Oulu campus to Technopolis.

    By Charlie Osborne for Between the Lines | February 12, 2013

    Nokia's Headquarters, Espoo, Finland
    Nokia continues to slice away at its business costs, and as part of a move to help right the balance books, the handset maker has sold its Peltola campus in Oulu, Finland.

    According to storage and business space provider Technopolis, Nokia has agreed to sell its Oulu-based campus, which will give Technopolis approximately 37,600 sqm of office space and 800 parking spaces. The total investment comes to €31.7 million ($42.4m).

    However, this doesn't mean Nokia is left out in the cold. According to the statement, Nokia will lease roughly 17,400 sqm from Technopolis as part of a long-term agreement.

    The move follows Nokia's decision in December to sell its headquarters in Espoo, Finland, which gave the ailing firm a cash boost of €170m. In the same manner as the Nokia-Technopolis deal, the firm took a long-term lease with buyer Exilion Capital to rent office space.

    Once the sale was made public, Nokia's CFO Timo Ihamuotila commented:

    "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."

    Technopolis believes it will be able to fill 64 percent of the campus by the second half of 2013, and expects this to rise to more than 90 percent within two years. The acquisition of the Peltola campus has been made in order to expand the business space company's existing Kontinkangas campus in the local area.

    It is not just real estate which is being shaved away. In January, Nokia announced its intentions to reduce its global IT organization by 300 members of staff, and transfer up to 820 employees to its operating partners. The latest round of job cuts are part of wider plans to axe 10,000 jobs by the end of this year.

    Sentiment: Strong Sell

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