After what seems like a decade or more of the idea being tossed around, Sears Holdings (NASDAQ:SHLD) announces the formation of Seritage Growth Properties which will buy roughly 254 of the company's Sears and Kmart stores (SHLD owns or leases 1,725 Sears and Kmarts).
Proceeds to SHLD are expected to be north of $2.5B, and in turn the company will lease back the stores from Seritage and continue to operate them.
Seritage will raise part of the necessary funds through a rights offering. Eddie Lampert and his associated funds intend to exercise their pro rata portion of the subscription rights in full.
Shares +6.9% premarket
Previously: Sears Holdings enters into real estate JV with General Growth Properties (April 1)
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