Nokia sells Espoo HQ for $222 million, company will remain at location

Nokia has announced that a sale of its Espoo, Finland HQ has gone through, which will see the manufacturer pocket €170 million ($222 million). The Finnish handset maker, which is focusing on Windows Phone development, will remain as tenant at the location, as we previously speculated when reports began to surface earlier this year.

The cost-saving move is an expected step for struggling Nokia to take, especially when taking into account the financial situation the company is currently in. While Nokia has taken measures to cap expenditure, including the closure of factories, at least employees will remain at the base of operations, which has been utilised since 1997. Timo Ihamuotila, CFO at Nokia, had the following to add to the announcement:

"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."

The Lumia 920 is believed to have sold well since it launched, and is available in numerous markets (though limited stock warnings are continuing to be published by retailers and carriers). Until the next financial report is released we can only carry on speculating how the company is performing, as well as its highly rated flagship Windows Phone. 

It's a good sign Nokia is taking measures to remain in business. Windows Phone desperately requires the marketing power Nokia invests into its products, just as much as the company requires advances made to Microsoft's mobile platform, now that it has thrown all eggs into a single basket. If the positive reception displayed by both consumers and companies is anything to go by, we could well be seeing a stronger Nokia in 2013.

Source: Engadget

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds was formerly a Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him on Twitter at @RichEdmonds.

  • No pain no gain. Adjusted now. Thank you.
  • No pain no gain* it has to rhyme
  • Oops. You are right. I agree
  • Awesome lol I was just messing by the way
  • Well. At least it has put a smile on my face
  • How's that debit card working for you
  • Burn baby burn! Nokia is going back to that startup mentality. Cut everything and put the engineers and marketing team in the same room. Cell phones are about to see rapid r&d work rolled out every 6 months. Now if only these tech bloggers would get off the apple tit. Apple wont be so evolutionary with the next iPhone, because Nokia is throwing everything at the wall and people are actually starting to pay attention.
  • Yes. Now if only MS could get their act together. Im tired of seing same bugs in WP8 as I had in WP7.
  • What bugs are you referring too?
  • Sorry Im a bit grumpy today, its not that bad. :) Sometimes not being able to connect to wifi until i restart the phone.
    Live Tiles stops updating/delay.
    Crashing phone, my Omnia 7 crashed at least once a week.
    Problem starting music with bluetoth-headset after making calls or reconnecting headset due to out of range (had this early on WP7)
  • The only thing perfect in this world is GOD , and the funny thing is we don't even know or seen him ,other than that there's nothing perfect ,ppl can't even do a perfect movie after a million ppl saw it ,imagine a os get over it pls.
  • The same god that got angry at a fig tree because it didn't have fruit so he cursed it? (it was out of season by the way) Moving on, MS has a long way to go but they have been building a strong foundation with windows 8. WP7 didn't have that foundation. There is a much greater chance for things to take off than there was before... People are taking notice more than they ever have.
  • The tree... Recheck the story and the context and reason behind the cursing of the tree. Relating this back to the topic at hand, I really hope we see a lot more WP fruit produced in 2013. Microsoft set the stage with WP8. Now we need devices, apps, services, and support. It's too bad that of the manufacturers Nokia is shouldering way more than their fair share of the burden.
  • Don't meant to be that guy, but iOS is almost perfect.
  • Yeah, what bugs are you talking about? The only things I can think of that I've heard or seen is"
    1.Duplicate songs when using the drag/drop method
    2.Exchang active sync mail erroring
    However, each of these issue have a fix.
    1. Once you've connected you phone to your PC, go to file explorer, you will see you device in the left hand tree view pane. Open it, and enabel hidden files so you can see your media folders: pic, music, etc. Empty the contents. Once you done this, you will not have the duplicate issues.
    2. This issue is  permissions issue specific to the user in question and can be fixed by selecting the affected users properties in AD, go to the security tab, click advanced,check, "include inheritable permissions from this object parent box". click Apply and OK
  • Can we stay on topic and talk about RAMART.
  • Very smart decision.
  • Nokia will be back ,put it down on paper.
  • €170m is a good cash injection. #Nokia2013
  • It doesn't work that way. Only the amount Nokia will profit from this will be marked up. Some estimates where that it would be 20 million euros.
    But anyways these large companies rarely own any of their officies. There's 120 000 people working for Nokia and Nokia only owns couple of offices, but yeah of course it means something that Nokia at this point sells its HQ. 
  • The company's asset value will remain the same, or will increase or decrease depenting if the sale price was higher or lower than the amount the proberty was valued. But the company will get a cash injection from this sale.
    Say Nokia has €1B in cash and €1B in other assets (totaly made up numbers), after this sale they will have €1.17B in cash and €0.83B in other assets. Value remains the same, but the company now has more cash for R&D, marketing, ect
  • Takes real guts for such decisions.
  • Not to mention the leadership experience to recognise that focus is priceless.
  • Here are the WP sales rankings on right now:
    AT&T (96 phones offered)
    14. HTC 8X Blue 8GB (22. a week ago, 39. a month ago)
    24. Nokia Lumia 920 Black (28. a week ago, not available a month ago)
    30. Nokia Lumia 920 Cyan (37. a week ago, not available a month ago)
    31. HTC 8X Yellow 8GB (71. a week ago, not available a month ago)
    40. Nokia Lumia 920 Red (46. a week ago, not available a month ago)
    44. Nokia Lumia 920 White (44. a week ago, not available a month ago)
    49. Nokia Lumia 820 (59. a week ago, not available a month ago)
    51. Nokia Lumia 900 Black (43. a week ago, 28. a month ago)
    57. Samsung Focus Flash (49. a week ago, 72. a month ago)
    65. HTC 8X Blue 16GB (70. a week ago, not available a month ago)
    67. Nokia Lumia 920 Yellow (72. a week ago, not available a month ago)
    69. Samsung Focus 2 (52. a week ago, 49. a month ago)
    70. Nokia Lumia 900 White (75. a week ago, 35. a month ago)
    71. Nokia Lumia 900 Cyan (47. a week ago, 58. a month ago)
    82. HTC Titan (54. a week ago, 69. a month ago)
    83. Samsung Focus S (86. a week ago, 71. a month ago)
    HTC Titan II is not offered
    Nokia Lumia 900 Pink is not offered
    HTC 8X Yellow 16GB is not offered

    Verizon (83 phones offered)
    24. HTC 8X Black (19. a week ago, not available a month ago)
    25. HTC 8X Blue (38. a week ago, 56. a month ago)
    29. Nokia Lumia 822 Black (29. a week ago, 57. a month ago)
    67. HTC 8X Red (59. a week ago, not available a month ago)
    69. Nokia Lumia 822 White (61. a week ago, 55. a month ago)
    82. HTC Trophy (79. a week ago, 71. a month ago)
    Nokia Lumia 822 Grey is not offered
    T-Mobile (32 phones offered)
    16. Nokia Lumia 810 (17. a week ago, not available a month ago)
    19. Nokia Lumia 710 White (29. a week ago, 27. a month ago)
    24. Nokia Lumia 710 Black (28. a week ago, 26. a month ago)
    26. HTC 8X (22. a week ago, not available a month ago)
    32. HTC Radar (30. a week ago, 20. a month ago)
    Sprint (49 phones offered)
    None offered
  • 8GB phone selling better than the 16 and 32GB models. This shows that storage space doesn't matter as much as its painted all over this site.
  • often it happens people don't even know that there is a 16gb option for the same phone. BestBuy doesn't display all models. Also, sales people also may not have adequate knowledge about the two options. 
    So, I am not surprised. Also, pricing makes a difference.
  • The phones each carrier offers makes a difference as well. But if you look at the chart, like hary536 said, comes down to price and manufacturer. Comparing what the sales guys told me during my in-store T-mobile experience the weekend before Thanksgiving: HTC Radar (WP7.5) 8 GB - sold out - price: FREE Lumia 710 (WP7.5) 8 GB - almost sold out - price: $30 (what we bought for daughter) Lumia 810 (WP8) 8 GB + mem slot - few sales - price: $149 (what I considered for self, but knew Thanksgiving sales coming and didn't want to settle) HTC 8X (WP8) 16 GB - even fewer sales - price: $199
  • I'm surprised they're doing that well at BB.  I was at my local BB on Saturday to look at a 920 and they had only 1 Windows phone on display ... the HTC.  No other WP phones -- not 7.5 or 8.  When the rep came up and asked me if he could help, I asked him if they had anymore WP phones and he said no and that nobody was really interested in them.
    But that bad experience was removed from memory (until now) when I went to my local Microsoft store and got my Surface :)
    Frankly, I will not mind when BB finally crash and burns.
  • do they have anything left they haven't sold already? poor Nokia I feel for them trying to only stick with a OS that has 3% market share
  • yeah, that is bitter for nokia... you know the end is near when you have to sell your own home. IF wp8 and the lumia phones will flop ( we just have speculations atm) then its over for nokia, thats for sure.
  • With all the reorganisation going on and focusing on getting the company more effective I would guess lots of people have to leave/move and there is no need to pay lots of rent for empty space. I doubt its the sign of "the end".
  • People like you just confirm that whatever platform you're supporting is not innovative enough to keep your attention so you come the place where real innovation is happening and hope for the worse. Why don't you just go ahead and buy a windows phone, "BECAUSE YOU KNOW YOU WANT ONE"! We won't hold it against you : )
  • This may be a good move for Nokia, but I will not be surprised when the majority of the media reports this as another example of Nokia going down.
  • Well, they sure as hell aren't going up at the moment.  Companies don't liquidate assets like this when they are prospering.
  • yes. it's awesome when you sell your own home head quarters? it's a sign of a healthy company looking to take the world head on!
  • @ammarmalik: You seem to be trying hard to find opportunities to bash Nokia going WP, this isn't the first time..why don't you for a change go and try your bashing in one of those more optimistic articles that talk abt lumia 920sales flourishing?? You'll get your earful over there mate...:P
  • Trust me I REALLY want to try this phone, it looks just delicious especially in yellow. But you know it as well as I do it's not available anywhere. And where it is, it's embarrasingly overpriced for a Nokia product.
  • Go buy HTC 8s instead if you can't afford Lumia 920. It's basically the same phone. Both have WP8. 8S is lighter and it has sd slot.
  • I can afford it. But I'm not going to pay $800 US or 700 Euros for this phone. Or any phone for that matter. Especially when they're suppose to be officially available for around ~$650 US.
  • Over-priced but sold out...
  • My point exactly. I know we all want to see this as a good sign (Nokia focusing on core business, getting rid of "extras," etc.), but I find the news unsettling.
  • Think of it this way... Nokia is narrowing their focus- we all know this.  Does owning, managing, and maintaining a property make sense?  Flip it around and the answer becomes more clear...  What if a real estate investment company had a smart phone division... how well do you think that would be run?  This is a smart move, no question about it.
  • Dude, Thanks for the information, but it's a bit repetitive and unnecessary. 
  • ?
  • Misplaced I think...
  • All of a sudden Nokia stock has risen .10¢ today, so I'm happy I bought shares when it was really low.
  • I still think it's ridiculous that instagram sells for 1billion but these amazing buildings sell for 222million!
  • I agree