BlackBerry Ltd (NASDAQ:BBRY): Selling Of Canadian Real Estate Holdings

by Tom Carlson | Tuesday, Mar 25, 2014 | 921 views

Boston, MA, 03/25/2014  (usastockreports)- The management of any company contributes significantly in its growth and it is once again proved by the Chief Executive of BlackBerry Ltd (NASDAQ:BBRY). John Chen joined BBRY in last November and from there on have taken many steps to turn around the fate of BlackBerry. Now along with a seller of smartphones, BBRY specializes in enterprise grade software and services. John Chen started the transition phase by culling of senior management and now the next step in the same direction is to sell most of its Canadian real estate holdings.

The strategy

BlackBerry Ltd (NASDAQ:BBRY) has finalized the agreement to sell more than 3 million square feet, which is a much greater part of its real estate holdings in Canada. Further it has plans to lease back a part of the space in the near future. Till this time the company has not disclosed the name of buyers. Also the financial details regarding the transaction are still not out. All the details will be disclosed once the principal conditions are fulfilled. The deal is expected to materialize in the coming two months.

It was in the start of the year, BlackBerry Ltd (NASDAQ:BBRY) unveiled its plan to sell the Canadian real estate holdings. Clearly the objective is to get the liquidity to support the turnaround plans of BlackBerry. The company was struggling from last some time to keep its place intact in the industry. With this deal the company can get greater freedom as well as flexibility to meet business needs. It will enhance the company’s operational efficiencies and will provide ample resources for the growth of company.

The focus areas

It should be noted that under the leadership of Chief executive John Chen the company is making continuous efforts to gain its position back in the industry. Now the focus is on areas like enterprise grade software and services, revenue generation from BlackBerry Ltd (NASDAQ:BBRY)’s messenger (BBM) technology and setting up the company’s foot back again in its forte of physical trackpad in mobile segment.

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