Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

BlackBerry to sell most of its Canadian real estate holdings; no price disclosed

A Canadian flag flies at BlackBerry's headquarters in Waterloo, Ont., Tuesday, July 9, 2013. Blackberry plans to sell most of its Canadian real estate holdings as it works to shore up its business under new management.THE CANADIAN PRESS/Geoff Robins

Enlarge Image

A Canadian flag flies at BlackBerry's headquarters in Waterloo, Ont., Tuesday, July 9, 2013. Blackberry plans to sell most of its Canadian real estate holdings as it works to shore up its business under new management.THE CANADIAN PRESS/Geoff Robins

WATERLOO, Ont. - BlackBerry is selling the majority of its commercial real estate holdings in Canada, but the struggling smartphone maker refused Tuesday to say how much it expects to make from the deals.

Waterloo, Ont.,-based BlackBerry (TSX:BB) said it plans to use a combination of vacant sales and sale-leaseback arrangements in divesting the properties.

The company said the properties being offered for sale comprise more than three million square feet of space.

"BlackBerry will not comment on the potential value of a sale and will disclose further information as required in connection with any definitive sale transaction," it said in a release after markets closed.

The company is working with CBRE, a commercial real estate company that provides financing and management services in conducting the sales.

"BlackBerry remains committed to being headquartered in Waterloo and having a strong presence in Canada along with other global hubs," CEO and executive chairman John Chen said.

"This initiative will further enhance BlackBerry's financial flexibility, and will provide additional resources to support our operations as our business continues to evolve."

Shortly before Christmas, the University of Waterloo announced it had purchased five buildings and land from BlackBerry for $41 million.

The deal, which is expected to close Feb. 14, will add an additional 300,000 square feet and more than 1,000 parking spaces to the school's property holdings.

The university said it planned on using three of the buildings as soon as the deal closes, while the remaining two would be leased to the smartphone maker for up to five years.

BlackBerry pioneered the smartphone in 1999 and dominated the market for years but has since been eclipsed by Apple's iPhone as well as Android-based rivals.

Under new CEO Chen, the company has been working to turn around its business and last month entered into a five-year partnership with a Taiwanese company in an agreement that will offload much of its manufacturing costs.

On Monday, the company's shares rose more than eight per cent after it got a vote of confidence from the U.S. Defence Department, which said about 80,000 BlackBerrys would be deployed on its new mobile device management system by the end of the month.

The number represents about 98 per cent of the initial haul of devices, which includes another 1,800 devices like Apple's iPad, iPhone and tablets and phones on the Android operating system.

The disclosure last week also shows the U.S. government still considers BlackBerry part of its stringent security infrastructure.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates