Friday, August 1st24.5°C
22663
20700

BlackBerry reaches agreement to sell most Canadian real estate, lease some back

WATERLOO, Ont. - BlackBerry (TSX:BB) has reached an agreement to sell a majority of its Canadian real estate holdings as part of an effort to improve its business.

The company said Friday it will sell more than three million square feet of space and vacant lands and lease back a portion of the properties.

BlackBerry did not disclose the buyer or the purchase price as it said the sale was still subject to unspecified conditions.

"The successful sale of property in Canada will help us move toward our goal of continued operational efficiency," CEO and executive chairman John Chen said in a statement.

The company had announced in January that it planned to sell the majority of its Canadian real estate holdings.

BlackBerry pioneered the smartphone in 1999 and dominated for years, but since the late 2000s the company has been hammered by competition from the iPhone as well as Android-based rivals.

Under Chen — who took on the CEO post permanently late last year — BlackBerry has been working to turn around its business.

Chen said that BlackBerry is still committed to having a strong presence in Canada. It is keeping its headquarters in Waterloo, Ont.

The company said that more terms of the transaction will be announced once principal conditions are satisfied or waived.

The deal is expected to close in the first quarter of the company's 2015 financial year, which ends June 1, 2014.

BlackBerry has been cutting costs and restructuring its business in a bid to stay alive including a plan to eliminate of about 40 per cent of the company's workforce.

In December, the company sold a handful of buildings to the University of Waterloo for $41 million under an agreement that would allow the company to lease back some of them for up to five years.

And earlier this month, BlackBerry sold its U.S. headquarters in Irving, Texas, to Brookfield Property Group for an undisclosed amount. The company plans to lease back at least part of the six-building location.

Blackberry is scheduled to report its fourth-quarter and full-year results March 28.

Shares in the company shares rose 12 cents to C$10.73 in trading on the Toronto Stock Exchange in trading Friday.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15215.26-115.471
S&P CDNX1000.63-0.89
DJIA16493.37-69.93
Nasdaq4352.639-17.134
S&P 5001925.15-5.52
CDN Dollar0.9158-0.0003
Gold1293.10+11.7999
Oil97.85-0.32
Lumber325.20+0.80
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.180.00
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.085+0.02
Anavex Life Sciences0.255-0.007
Metalex Ventures0.14+0.06
Russel Metals34.94-0.29
Copper Mountain Mining2.67-0.08
Colorado Resources0.185-0.02
ReliaBrand Inc0.15+0.05
Sunrise Resources Ltd0.035+0.005
Mission Ready Services0.155+0.005

 



22235

FEATURED Property
2023895Immaculate Home in popular Rose Valley new Mar Jok and Rose Valley schools!
$419,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


The rewards of listening

Eighty percent of our success in learning from other people is based on how well we listen. Other people’s experience can be enormously helpful. With it we can often overcome time restraints and...


Jobs, jobs, jobs galore

On March 6, 2010 a bridge in Turku, Finland bent 56 inches (143 centimeters) due to structural failures of both piers. No one was injured. The bridge had to be demolished 4 months later. Our infrast...


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...

_








Member of BC Press Council