(JeepersMedia)
As Sears continues to shake out all its piggy banks and check under every single couch cushion it has for spare change, the retailer chain is also looking to outside sources to help it raise some revenue. The company has teamed up with mall king Simon Property Group to create a new company that will bring in $114 million extra for Sears, money it sorely needs.
Sears Holdings Corp. says it’s creating a real-estate joint venture with Simon as a way to leverage its existing properties into moneymakers, reports Bloomberg.
Sears will transfer 10 properties worth $228 million to a new company that it’ll own jointly with Simon. Under a leaseback arrangement between the two, Sears will still be in charge of running the stores at those 10 locations, while Simon agreed to buy another property in Texas as a separate deal.
This is just the latest moneymaking plan Sears has thrown out there lately, along with CEO Eddie Lampert selling and spinning off assets like the Sears Hometown & Outlet Stores chain and the Lands’ End Brand.
Lampert said in a statement regarding the Simon deal that it’s “an important step in Sears Holdings’ continued transformation to a membership company, without the significant asset intensity of its traditional retail business.”
This agreement will allow the new joint venture to redevelop those 10 properties included in the deal, as well as lease space to other parties that could bring in even more revenue for the two companies.
“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,” Lampert said.
Sears to Gain $114 Million From Real Estate Pact With Simon [Bloomberg]
by Mary Beth Quirk via Consumerist