Exilion fund bets on Nokia HQ

Finnish private equity property fund manager Exilion Capital has taken a big bet on the future fortunes of Nokia, the country's loss-making mobile phone maker.

Real estate fund Exilion Real Estate I has signed a contract to acquire Nokia's headquarters' located at Espoo, near Helsinki for EUR 170 mln in a sale-and-leaseback transaction. The asset will make up 45% of the fund's portfolio by value.

Nokia confirmed in a statement that it is selling the 48,000 m² complex to raise much-needed funds and will continue to occupy it on a long term lease.

Located in the Keilaniemi area of Espoo, the property comprises three office buildings constructed between 1996 and 2001 and a parking garage. About 1,800 people work at the site.

'Because of the quality of the building, location, and long-term contract, this property fits very well into our investment strategy. We are proud to partner with a company like Nokia. The deal nearly doubles the value of the fund’s property portfolio; we are actively looking for even more properties as well as aiming to start new funds,' said Exilion Capital managing director Ari Talja.

Exilion Capital is owned by four Finnish institutions and it mainly invests in commercial and residential properties in Finland’s growth centres.

Exilion Real Estate I Ky was set up in 2007. At end-June this year the fund owned three properties in Helsinki CBD and Ruoholahti with a market value of about EUR 210 mln.