Nokia sold its headquarters

The Wall Street Journal - Nokia is in conflict with the difficult economic situation in which it finds itself, sell the building that houses its headquarters, gaining a 170 million euros in cash. The Finnish company Exilion Capital Oy, which is engaged in real estate funds, during the negotiations with several companies emerged as the highest bidder, reported the Nokia. The building with an area of ​​48,000 square meters, which rendered service currently 1,800 employees, the company is established for 16 years and will be there as well. Nokia premises is hired back.



It is a known practice of monetization of real estate, which companies use the capital they have tied the bricks and concrete. Property sale to the highest bidder, and then begin to pay rent for its use (sell and lease back). Surgery is sometimes necessary when the rent according to the realized proceeds of cheaper credit financing in banks, commercial paper, or interest rate on corporate bonds issued. Nokia difficult to issue bonds, because the rating agency's assessment of this year sklestile almost to the level of Greece, so that the premiums were high. Commercial paper shall for Nokia too short a period to maturity, loans to a company in difficulty is no longer cheap. In October, the successful issued 750 million euros of convertible bonds with a 5 percent coupon rate and convertibility at 28 per cent premium to the current stock price (if the shares grow by 28 percent, the bonds could be exchanged for them).

For example in Slovenia is known as the largest trader who, unlike competition in the large majority of buildings, which has its own shops. It is estimated that around billion of assets, a decision on monetization, which is often mentioned, have not yet adopted. Other dealers are mostly rented property.

Nokia CFO Timo Ihamuotila the diplomatic concluded that ownership of property is not Nokia's mission, therefore, excluded from this "investment" dropped out when they found a good customer. The main problem that Nokia has, of course, weaker liquidity. The loss, which runs for six consecutive quarters, it is cut into the liquidity reserve and the current pace, Nokia liquid assets only for another year. On the one hand, shrinking costs, and on the other hand, conversion of illiquid assets in the funds are a logical response to these pressures. Nokia 2014 is due more than one billion dollars in loans.