BlackBerry is really working to turn around their numbers for their upcoming earnings report. They just confirmed that they have sold a large portion of their Canadian real estate in their plan to free up cash to grow the company. This allows them to lease back only the space they need as they sell 3 million square feet of space as well as empty land. BlackBerry is leasing back some of that space as they need it with this deal closing in the first quarter of fiscal 2015.
We wish they didn’t have to sell the land but its good to see that their plan for freeing up operating cash is working. Details below:
BlackBerry Announces Update on Sale of Canadian Real Estate Holdings
BlackBerry Announces Update on Sale of Canadian Real Estate Holdings
Enters Sale Agreement as Part of Global Business Efficiency Program
WATERLOO, ONTARIO–(Marketwired – March 21, 2014) – BlackBerry(R) Limited (NASDAQ:BBRY)(TSX:BB), a world leader in mobile communications, today announced that it has entered into an agreement pursuant to which it will sell the majority of its real estate holdings in Canada. The announced transaction is part of BlackBerry’s ongoing program to improve operational efficiencies, optimize resource usage and shift resources to support operations as the business continues to evolve.
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. CBRE Limited served as an advisor to BlackBerry for this transaction. BlackBerry expects closing to occur in the first quarter of fiscal 2015. The transaction is subject to certain conditions, and the transaction may not be completed on the negotiated terms, or at all. Additional terms of the transaction will be announced once the principal conditions are satisfied or waived by the parties.
"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."
