12/20/2013 04:11 EST

BlackBerry Sells Buildings Amid Massive Losses


BlackBerry just made a massive sale —not of its phones but of its real estate.

The troubled tech company sold five of the buildings in its Waterloo-based complex to its neighbour, the University of Waterloo, for $41 million.

The news comes the same day as the smartphone maker reported a whopping $4.4 billion loss. Poor sales of its new BlackBerry 10 devices sent revenue tumbling 56 per cent from a year ago, to U.S. $1.2 billion.

BlackBerry has been downsizing and laying off employees, many of them at its headquarters in Waterloo.

The company will lease two of the buildings for up to five years.

BlackBerry also announced Friday that it is outsourcing its handset manufacturing to Chinese manufacturer Foxxconn, which also makes phones for Apple.

The real estate deal, which is expected to close Feb. 14, will add an additional 300,000 square feet and more than 1,000 parking spaces to the school's property holdings.

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