BlackBerry Ltd (BBRY) to sell real estate assets to Spear Street
BlackBerry Ltd (NASDAQ:BBRY) is preparing to sell some of its real estate assets in Canada to San Francisco-based real estate investment company Spear Street Capital LLC for $278 million. BlackBerry said it would sell over 3 million square feet of space along with vacant lands. BlackBerry will also lease back a portion of the space.
The real estate transaction is expected to happen in the first quarter of fiscal 2015. Spear Street Capital waived a due diligence condition in its deal to buy the majority of BlackBerry’s real estate holdings in Canada. BlackBerry is anticipating to sell properties valued at 80% of the deal later this month and the rest by Q3 of this year. BlackBerry is also anticipating tax refunds of around $400 million in the current quarter.
BlackBerry CEO John Chen has a company goal of hitting profitability by early 2016. The company is expected to reach cash flow break-even by the end of the current fiscal year. The tax refund and the real estate sale should help in achieving these goals.