The buy and lease back option is a favoured tactic of organisations that are asset rich but cash poor. They get the cash up front and then pay rent – it’s a bit like a loan, except you end up with nothing. The complex was sold to Exilion Capital, and large Finnish property developer and owner of a large software company of the same name, for €170 million ($213 million).
Nokia had occupied the building in Espoo, near Helsinki, for eleven years. It is a large 50,000 m2 building built in the modern Scandinavian style with hardwood floors and impressive public areas. It was built in multiple stages, with its various wings connected by glass enclosed bridges. Over1800 Nokia staff work there, though there is room for many more after staff cuts in recent years.
"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome,” said Nokia CFO Timo Ihamuotila.”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."
