Success in the deal to acquire 11 Sears (SHLD +18.7%) store locations for the buyer, General...


Success in the deal to acquire 11 Sears (SHLD +18.7%) store locations for the buyer, General Growth Properties (GGP +2.8%), hinges on one property. Analysts say $250M of GGP’s $270M purchase went toward the store in Ala Moana Center in Honolulu; other anchor stores GGP has bought in the past year ranged from $2.5M-$30M, making Ala Moana a massive purchase.

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Comments (6)
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    Imagine what the San Francisco, New York, Los Angeles, Boston, San Jose, Vancouver and Washington, D.C. properties will go for.

     

    I wouldn't be surprised if they can sell 30-35 of these properties for $100 million dollars each.
    23 Feb 2012, 05:09 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    This article talks about Eddie's rather clever plan to monetize assets WELL into the future.

     

    Things are looking great at SHLD!!

     

    http://bit.ly/zQ77aq
    23 Feb 2012, 06:59 PM Reply Like
  • frankhkii
    , contributor
    Comments (176) | Send Message
     
    There are individual properties that could easily go for over $100mm.
    25 Feb 2012, 06:52 PM Reply Like
  • Admiral Relative Value
    , contributor
    Comments (33) | Send Message
     
    If you reference the SHLD press release, you will note that they dont even own the Ala Moana property: http://bit.ly/ysOYTK

     

    Analysts are arguing that GGP paid $250MM for a lease? Granted the mall currently does $1,200 per square foot in sales. GGP will surely break down the Sears big box into smaller, higher rental spaces.
    23 Feb 2012, 05:33 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (6318) | Send Message
     
    Why didn't Sears do it themselves instead of selling the lease.
    23 Feb 2012, 07:09 PM Reply Like
  • Admiral Relative Value
    , contributor
    Comments (33) | Send Message
     
    I think that Lampert sold the properties to illustrate to the market that his real estate is worth billions - possibly as much as the entire enterprise value of SHLD. It looks like he is working to create a retail REIT with under-utilized properties: http://shcrealty.com

     

    Long term I would not be surprised if he spins-off the brands and retail operations and leaves the real estate in SHLD which will provide income for him to make investments through the HoldCo (a la Buffett using insurance float for investments).
    24 Feb 2012, 10:59 AM Reply Like
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