BlackBerry has sold the majority of its Canadian real estate portfolio to Spear Street Capital for US$278m after the investment firm waived its due diligence condition.
The deal sees the Canadian handset maker relinquish more than three million square…
BlackBerry has sold the majority of its Canadian real estate portfolio to Spear Street Capital for US$278m after the investment firm waived its due diligence condition.
The deal sees the Canadian handset maker relinquish more than three million square feet of space and other land through a combination of sale-leaseback and vacant asset transactions.
BlackBerry’s share price fell 2.7% following the announcement as the amount it sold the properties for was less than many analysts predicted. According to BlackBerry’s Q4 results, the “fair value” of its total property holdings was US$594m.
BlackBerry expects to close the sale of properties equivalent to 80% of the total deal value by the end of the month. The sale of the remaining properties will be completed during the third calendar quarter (Canada) of 2014.
CEO John Chen, tasked with turning around the company, previously said the real estate disposals would improve the company’s “operational efficiency”. It was advised by property firm CBRE on the deal.
In its Q4 results BlackBerry disclosed long-term debt of US$1.6bn. The company’s share price has fallen drastically over the last few years. Its stock is trading at US$7.93, compared to US$61.68 at the start of 2011.
