Blackberry sells off Real Estate positions

BlackBerry Ltd. plans to divest the majority of its Canadian real estate holdings in a bid to raise cash, with properties on the block comprising more than three million square feet of commercial space.

The money-losing device maker said it will pursue a combination of sale-leasebacks and vacant asset sales, but remains committed to maintaining its headquarters in Waterloo.

The company will continue to have “a strong presence in Canada along with other global hubs,” said BlackBerry CEO John Chen in a statement.

“This initiative will further enhance BlackBerry’s financial flexibility, and will provide additional resources to support our operations as our business continues to evolve,” he added.

BlackBerry would not comment on the potential value of the portfolio which includes two sprawling campus style clusters in Waterloo along with office, industrial and development properties in Cambridge, Mississauga and Ottawa.

BlackBerry in a regulatory filing has said it intends to monetize property assets as it looks to cut operating costs by half over the next few quarters. The company has also announced plans to eliminate more than 4,600 jobs and says the downsizing has reduced its need for space.

The filing valued land in the portfolio at $119 million as of June 1 and said property including buildings and leasehold improvements were worth $1.28 billion before amortization. The University of Waterloo in December said it had purchased five buildings and land from BlackBerry for $41 million.

Shares in BlackBerry rose more than 3 per cent in after hours Nasdaq trading to $10.25 (U.S.) after gaining more than 8 per cent during the regular trading on optimism that Chen is moving aggressively to engineer a turnaround.

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