The way Sears Holdings’ (NASDAQ:SHLD) has started the creation of an extensive portfolio of real estate acquisitions, news of a joint venture comes as the next logical step in order to tap into the true value of their portfolio. Sears Holdings and Simon Property Inc. (NYSE:SPG) have announced their joint venture on Monday.
As per the terms of the joint venture, Sears will contribute 10 properties located in Simon Property malls, which are Indianapolis based, to the partnership valued at $228 million. In return, Sears Holdings will get $114 million in cash and a 50% stake in the JV with Simon Property paying $114 million in cash to the newly formed Joint Venture and receiving the other 50% of stakes in the JV. In addition, Simon Properties will purchase a Sears Holdings property in McAllen, Texas, at the La Plaza mall. Continue Reading »