Sears, GGP Announce 50/50 Real Estate Joint Venture - Quick Facts

(RTTNews) - Sears Holdings Corp. (SHLD) and General Growth Properties, Inc. (GGP) said they have entered into a real estate joint venture under which Sears Holdings has contributed to the JV 12 Sears Holdings properties located at GGP malls, involving existing Sears Holdings stores and certain property leased to third parties occupying former Sears Holdings stores.

As part of the transaction, GGP has contributed cash to the JV, and the JV has leased back the existing Sears Holdings stores.

The transaction is designed to unlock real estate value and enhance financial flexibility for Sears Holdings while providing the JV the opportunity to create additional value through re-development and re-leasing of up to 50 percent of each property.

A subsidiary of Sears Holdings has contributed to the JV 12 properties at GGP malls where Sears Holdings currently operates department stores, in exchange for an interest in the JV and $165 million in cash. The deal values these properties at $330 million in the aggregate.