It comes as no great surprise that BlackBerry are selling off buildings and land as part of their bid to increase their profit margins in the smartphone world. We've seen jobs go over the last year or so and with a couple of thousand less staff, it only makes sense for BlackBerry to make the most of the real estate that they no longer need.
As you'll see from the following press release they will also be leasing back some of the space, but they are looking at selling 3 million square feet in total.
It's not the news we like to hear, but if it drives the company forward then I'm all for it.
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."