BlackBerry has agreed to sell most of its property portfolio in Canada for an undisclosed fee as it looks to cut costs as part of its turnaround plan.
The handset maker said it would disclose further details at a later date. According to BlackBerry’s Q3…
BlackBerry has agreed to sell most of its property portfolio in Canada for an undisclosed fee as it looks to cut costs as part of its turnaround plan.
The handset maker said it would disclose further details at a later date. According to BlackBerry’s Q3 results, the “fair value” of its property holdings was C$633m (US$578m).
The embattled company is selling more than three million square feet of space, as well as vacant land, and will lease back a certain amount of property as part of the agreement.
Commenting on the disposal, CEO John Chen said: “The successful sale of property in Canada will help us move toward our goal of continued operational efficiency.”
Chen added that despite the sales, the company would continue to keep its global HQ in Waterloo, Ontario.
CBRE advised BlackBerry on the transaction, which is set to close in the first quarter of the Canadian fiscal year for 2015 – before the end of June.
The new CEO’s turnaround strategy – which includes a renewed focus on keyboard handsets and government/corporate clients – appears to be winning over investors. Since Chen’s appointment, BlackBerry’s stock has risen more than 46%, from US$6.50 to US$9.50.
