As promised, BlackBerry has released additional information about the real estate deal that will see it sell more than 3 million square feet of space as well as vacant lands. First announced in March, BlackBerry today revealed that Spear Street Capital, LLC will pay CA$305 million (about US$278 million) for the properties it is acquiring.
The deal is set to close in two parts. The first portion will cover about 80% of the properties will close later this month. The sale of the remaining 20% will follow sometime in Q3.
As already announced, BlackBerry will lease back a portion of the space. It will use it to maintain “a strong presence in Canada with Waterloo continuing as the home of its global headquarters.”
BLACKBERRY ANNOUNCES UPDATE ON SALE OF CANADIAN REAL ESTATE HOLDINGS
Waterloo, ON – 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.
About BlackBerry
A global leader in mobile communications, BlackBerry revolutionized the mobile industry when it was introduced in 1999. Today, BlackBerry aims to inspire the success of our millions of customers around the world by continuously pushing the boundaries of mobile experiences. Founded in 1984 and based in Waterloo, Ontario, BlackBerry operates offices in North America, Europe, Asia Pacific and Latin America. The company trades under the ticker symbols “BB” on the Toronto Stock Exchange and “BBRY” on the NASDAQ. For more information, visit www.blackberry.com.
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