Technopolis acquires Nokia’s Oulu Campus for $40.8 Million

After selling and leasing back their headquaters in Espoo, Finland, Nokia yesterday sold its Peltola campus in Oulu, Finland to Technolpolis, a finnish based business space provider, for $40.8 million. Nokia will reportedly get some part of the land for their personal use in a long term lease agreement.

Here’s what Nokia said in their Press release:

“Technopolis has acquired Nokia’s Peltola campus in Oulu. The rentable space of the campus totals approximately 37,600 sqm and includes a parking garage with 800 parking spaces. The total investment is EUR 31.7 million.

The campus, suitable as a multi-user environment, is being sold by Nokia, which will lease approximately 17,400 sqm of space from the campus under a long-term lease. Following the transaction, Nokia’s share of Technopolis’ net sales will remain below 3%.

The financial occupancy rate of the campus will be 64% from the beginning of the second half of the year based on existing leases and prelets. Technopolis believes that it can increase the financial occupancy rate of the campus to more than 90% within two years, increasing the net rental yield to over 11%. Current market yield is 8.5%.

The acquired properties are modern, flexible, and complement Technopolis’ existing 27,000 sqm Kontinkangas campus in the area. The two properties combined will offer 64,600 sqm of space.

Kontinkangas is a growing hospital, university and business district developing future health services, among other sectors. Over 100 organizations in the fields of ICT, biosciences, health and well-being operate in the area. The City of Oulu aims to create 700 new jobs in Kontinkangas by 2016.”

This can be taken as the company is trying to arrange more and more money to invest in their Devices and Services unit in which they have suffered the most in the past couple of years. They also stopped the dividend payment to the shareholders of 2012 for the first time in 143 years.

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