Sears Holdings, GGP Form JV, Complete $330 Million Sale-Leaseback

by Scott Reid

Chicago and Hoffman Estates, Ill. — Sears Holdings Corp. and General Growth Properties Inc. have entered into a real estate joint venture under which Sears Holdings has contributed 12 of its properties located at GGP-owned malls for approximately $330 million.

The properties include both existing Sears Holdings stores and certain properties leased to third parties occupying former Sears Holdings stores.

As part of the transaction, GGP has contributed $165 million in cash to the joint venture, and the joint venture has leased back the existing Sears Holdings stores. The joint venture has the opportunity to create additional value through redevelopment and re-leasing of up to 50 percent of each property.

In exchange for the 12 assets, a subsidiary of Sears Holdings will receive the $165 million in cash. A subsidiary of GGP made the cash contribution in exchange for a 50 percent interest in the joint venture. The contribution has been distributed to Sears Holdings, which will own the other 50 percent interest upon consummation of the transaction.

— Danielle Everson

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