BlackBerry selling most of Canadian property holdings


The company will sell more than 3M square feet of office space as well as vacant lands, leasing back a portion of the space for its continuing use. Closing is expected in 2015 FQ1. "BlackBerry remains committed to having a strong presence in Canada and we continue to consider Waterloo home to our global headquarters."

BBRY +2.3% premarket

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Comments (15)
  • Corey Sommers
    , contributor
    Comments (957) | Send Message
     
    I thought this was old news.
    21 Mar 2014, 08:45 AM Reply Like
  • zooropa
    , contributor
    Comments (4) | Send Message
     
    Have they mentioned a buyer? if not, it is not news at all.
    21 Mar 2014, 12:38 PM Reply Like
  • Crispin_in_Waterloo
    , contributor
    Comments (1652) | Send Message
     
    It might be the first time that a time frame has been mentioned.
    21 Mar 2014, 08:50 AM Reply Like
  • garryville
    , contributor
    Comments (52) | Send Message
     
    seems they are positioning the company so its can sell on the world market. Appears to me that the Canadian Government was the big stumbling block late last year when BB took the for sale sign down.

     

    Setting up tents abroad may give BB the ability to sell without the Canadian Government approval.

     

    Sort of obvious,
    21 Mar 2014, 09:03 AM Reply Like
  • abigchocoholic
    , contributor
    Comments (332) | Send Message
     
    Amazing how BBRY longs are taking this as positive news in pre-market--not to mention the fact that this was already mentioned a month ago and no numbers were released then or now. The company is liquidating. It's a liquidation sale.

     

    Not one word out of BBRY about how it's regaining marketshare---Q1 results are going to be scary bad.
    21 Mar 2014, 09:12 AM Reply Like
  • Corey Sommers
    , contributor
    Comments (957) | Send Message
     
    That's right, Chen joined and is heavily incented just so he can liquidate the company... I don't think so.
    21 Mar 2014, 09:17 AM Reply Like
  • TheBigPayback
    , contributor
    Comments (432) | Send Message
     
    Well of course it's a positive.

     

    It's a positive because more money in the coffers is a positive versus having assets on the books that don't aid in the turn-around.

     

    How is it a negative in any way?
    21 Mar 2014, 10:56 AM Reply Like
  • User 509088
    , contributor
    Comments (1704) | Send Message
     
    waterloo has put so much money into growing with rim.

     

    there are already empty buildings there, some never occupied.
    21 Mar 2014, 09:46 AM Reply Like
  • Pauld19
    , contributor
    Comments (14) | Send Message
     
    It is old news. At least two weeks old just like all the other news that keeps getting regurgitated for whatever reason.
    21 Mar 2014, 09:59 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (6928) | Send Message
     
    Sounds a desperation attempt to me to get more cash.
    21 Mar 2014, 10:40 AM Reply Like
  • Randal James
    , contributor
    Comments (4415) | Send Message
     
    Michael,

     

    When you are king of the world, it is easy to build an empire. If this turnaround is to be successful, the company has to APPEAR to be rock-solid financially, which it has not during these many recent dismal quarters. So you sell the buildings, the jets, the unnecessary and the exotic and then you don't have to look like quite so much as a fool when you have to keep borrowing to stay afloat. Losing money on playing in the retail phone biz? Close it down and get rid of the staff associated with that function.

     

    Not so much desperation as following the roadmap all companies need to embrace when things have gone badly.
    21 Mar 2014, 11:03 AM Reply Like
  • jcard2015
    , contributor
    Comments (455) | Send Message
     
    Blackberry has 3 of the best Realty Advisors who also own the $1.250B convertible bond on their side. Brookfield Asset MGT , Canso Financial and Prem Watsa who made good on the USA real estate correction. So Blackberry sells their real estate in a favorable real estate market and sets up a tax friendly lease back.
    Sounds good to me since interest rates have one way to go is up and last time I checked higher interest rates can turn real estate into a " Dead Horse that Eats " asset !!
    21 Mar 2014, 11:32 AM Reply Like
  • anonymous1234212
    , contributor
    Comments (167) | Send Message
     
    Exactly, because as a business, it's way better to hang on to (and bleed money through) real estate you don't need, rather than trimming your real estate to more accurately fit your company's size while simultaneously appearing to be "desperate".

     

    Nice
    21 Mar 2014, 12:38 PM Reply Like
  • Yasch22
    , contributor
    Comments (859) | Send Message
     
    This is the third and the biggest real estate announcement so far.
    1. Part of Waterloo campus sold for $42 million. A good price, in line wiith $130 average price/square foot in the Kitchener-Waterloo area.
    2. The Dallas-Fort Worth (HQ in America) sold for ~$50 million (my guess, based on $110/square foot as average commercial rate in the area).
    3. This one: 3 million square feet. What's the multiple? I'm going to guess it's at least $100/sf. Total value of the sale will be $300 million.

     

    I doubt very much that this raising of such a large amount of cash is the prelude to a sale of the company, or to do an end-run around the Canadian government. Keep in mind that Prem Watsa himself has always considered it a top priority to keep BlackBerry's four divisions intact and to keep HQ in Canada. BB right now is very tight with the feds, it seems to me, as the massive tax breaks will attest. BB can't just pick up hundreds of millions from the Canadian Government in tax breaks and then say "Sayonara."

     

    Then again, it might be true that Chen is playing a longer game here. His really big compensation doesn't kick in until the 3rd year of his contract. He gets 25% of his 13 million shares in year 3, the next 25% in year 4, and the final 50% in year 5. Up until that point he gets $3 million per year ($1m reg. salary, $2m in annual bonuses).
    21 Mar 2014, 05:47 PM Reply Like
  • Cliff Hilton
    , contributor
    Comments (2717) | Send Message
     
    So BlackBerry sells assets....negative? Maybe BlackBerry should by more asset....positive?

     

    Which is it Michael Bryant? I know, both are negative! As long as it's BlackBerry doing the buying and selling.
    21 Mar 2014, 06:27 PM Reply Like
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