Sears to Raise $2.5B by Forming REIT
Sears Holdings Corp. will raise more than $2.5 billion by siphoning off 254 stores into a real estate investment trust, the struggling retailer said on Wednesday. The newly formed REIT, Seritage Growth Properties, will buy and lease back the Sears and Kmart stores. The company's decision to move forward with a REIT was anticipated, and represents another urgent effort to raise cash. The department store chain hasn't turned a profit for several years. It will fund the purchase, in part, with the money raised from shareholders through a rights offering.