Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Sears set to make $114 million from Simon deal

Sears Holding Corp. has agreed to a joint real estate venture with Simon Property Group Inc., that will generate an estimated $114 million.

sears

sears

Simon and Sears, sittin’ in a tree…

Sears has agreed to transfer ten properties, valued at $228 million, to a company that it will own jointly with Simon Property Group, according to Bloomberg, and a statement released by both companies. This agreement includes a leaseback deal where Sears will be able to continue to operate stores at the agreed upon locations. Simon has also agreed to buy another Sears property at the La Plaza Mall in Texas.

bar
Chairman and CEO of Sears Holdings, Eddie Lampert, stated, “We are pleased to reach this agreement with Simon Property Group, which is an important step in Sears Holdings’ continued transformation to a membership company, without the significant asset intensity of its traditional retail business.”

This joint venture is unique

David Simon, Chairman and CEO of Simon Property Group, stated, “The creation of this joint venture represents an exciting new chapter in our long and successful relationship with Sears Holdings. This is a natural, forward-thinking partnership that will also offer us the ability to potentially redevelop certain locations that will create value for our customers and investors.”

simon-property-group

In case you missed it, this is just the latest of several Sears boosting methods introduced by Lampert. Sears outlets have been one of the more effective boosting methods seen. Sears also recently announced a similar joint venture with General Growth Properties (based in Chicago) less than two weeks ago.

That agreement included 12 properties and was valued at $330 million. This latest venture will allow Lampert and other major shareholders some breathing room to continue operations and acquire company assets after the retailer recorded its fourth straight year of falling profit and revenue in 2014.

Advertisement. Scroll to continue reading.

Will the JV project pay off?

Lampert seems to agree; stating, “this transaction, taken together with our other initiatives to create shareholder value through our vast real estate portfolio, enhances Sears Holdings’ financial flexibility to invest in longer-term strategies such as our membership and integrated retail platforms. Sears Holdings will continue to operate these 10 stores and there will be minimal impact on their day-to-day operations or the overall shopping experience for our members.”

Only time will tell whether or not these financial endeavors pay off, or are merely a stall on the way to more financial woes for the company.

#SimonSears

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

(BUSINESS NEWS) Despite a massive cash influx, Sears is having to shutter many stores, but with other adjustments, it may not be the end...

Business News

(BUSINESS NEWS) Sears has brought a lawsuit to one of their vendors after the vendor allegedly tried to take advantage of the retail giant.

Business News

(BUSINESS NEWS) Sears and Kmart have flailed for years like a fish out of water, but they're not giving up quite yet - here's...

Business News

Sears has hemorrhaged money of late, and creditors are grumbling that their days are numbered, but does Sears have tricks up their sleeve?

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.