Sears Taps Real Estate Equity

15063570025_16f26b1d78_zWhen times get bad, businesses often tap into real estate equity to bring in some quick cash. Sears is no different.

Sears Holdings will sell some of its properties to two newly created ventures, which in turn will lease them back to the company, generating much-needed cash.

Sears, which owned or leased 1,725 Kmart and Sears stores combined as of January, expects to earn $2.5 billion from the sale.

“A lot of retailers will be paying close attention,” said Matthew L Cypher, director of Georgetown University’s Real Estate Initiative, in an interview. “At the end of the day, Sears isn’t a real estate company. It’s a retailer.”

Find out more about Sears’ decision to tap into real estate equity to bring in cash at CBS Money Watch.

Photo courtesy of: Nicholas Eckhart