Dive Brief:
- Sears Holdings announced Monday that it is partnering up with investment firm Simon Property to form a real estate joint venture.
- Sears will contribute 10 of its properties, valued at $228 million, in which it plans to then lease back to the joint venture. Simon has contributed $114 million to the deal.
- The struggling retailer crafted a similar deal with General Growth Properties earlier this month.
Dive Insight:
With this move, Sears is once again trying to raise some much-needed cash from its substantial real estate holdings. Like its recent establishment of a REIT, dubbed Seritage Growth Properties, this move may help Sears buy more time to bounce back and reconfigure some of its basic business models.
"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," said Sears CEO Eddie Lampert in a statement Monday.