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