BlackBerry to Sell its Canadian Property Portfolio
Published on: 21st Mar 2014
By: Ian Mansfield
BlackBerry has announced that it is selling the majority of its real estate holdings in Canada.
Under the terms of the agreement, BlackBerry will sell more than 3 million square feet of space as well as vacant lands. BlackBerry will also lease back a portion of the space.
The company said that it expects closing to occur in the first quarter of fiscal 2015, but did not say how much it expects to raise from the asset sale.
According to a company disclosure last October, the value of its land, based on cost, was $119-million as of June 1st 2013 and its related buildings, leasehold improvements and other real estate assets had a value of $1.28-billion, at cost (prior to any amortization). That includes real estate that it owns outside the Waterloo region.
"The successful sale of property in Canada will help us move toward our goal of continued operational efficiency," said BlackBerry CEO and Executive Chair, John Chen. "As previously stated, BlackBerry remains committed to having a strong presence in Canada and we continue to consider Waterloo home to our global headquarters."
The deal "is part of BlackBerry's ongoing program to improve operational efficiencies, optimize resource usage and shift resources," the company added.