BlackBerry announced today that their previously announced agreement to sell the majority of it’s real estate holdings in Canada has come to an end. Spear Street Capital has agreed to purchase their 3 million square feet of space as well as vacant lands for $278 million (USD) ($305 million CAD).
With 80% of this sale going through by end of this month, BlackBerry, under the contract, will be leasing back some of it’s properties. The remaining 20% of the transaction would be completed by the end of Q3 2014.
Read the full press release below:
May 5, 2014
BlackBerry Announces Update on Sale of Canadian Real Estate Holdings
WATERLOO, ONTARIO–(Marketwired – May 5, 2014) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB), a world leader in mobile communications, today announced that Spear Street Capital, LLC has waived its due diligence condition pursuant to BlackBerry’s previously-announced agreement to sell the majority of BlackBerry’s real estate holdings in Canada. Spear Street has agreed to purchase the properties for CDN$305 million, or approximately US$278 million. The parties expect to complete the sale of properties valued at approximately 80% of this total later this month, with the sale of the remaining properties to be completed during the third calendar quarter of 2014, subject to customary closing conditions in each case.Under the terms of the transaction, BlackBerry will sell more than 3 million square feet of space as well as vacant lands. BlackBerry will lease back a portion of the space as the Company continues to have a strong presence in Canada with Waterloo continuing as the home of its global headquarters.