BlackBerry reaches deal to sell most of its Canadian real estate

TORONTO — BlackBerry announced Friday that it has reached an agreement to sell the vast majority of its real estate in Canada, as part of a plan outlined earlier this year aimed at bolstering the technology company’s bottom line.

BlackBerry said the terms of the transaction would only be announced after the principal conditions were satisfied, or waived by the parties acquiring the three million square feet of land.

The company announced in January that it planned to sell the assets, in partnership with commercial real estate company CBRE. BlackBerry plans to lease back a portion of the space being sold.

The deal comes a few months after BlackBerry agreed to sell buildings, along with some land, to the University of Waterloo for about $36.44 million.

Much of the real estate being sold is in Waterloo, Ontario, where BlackBerry is based.

As the company’s fortunes have slid and its workforce has shrunk in recent years, the Waterloo area has turned into a tech startup hub, spurring real estate demand in the region.

John Chen, BlackBerry’s CEO, said in a statement that the company remains committed to being headquartered in Canada following the sales.

Chen:

“The successful sale of property in Canada will help us move toward our goal of continued operational efficiency.”

Source: Reuters

 

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