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Sears, a REIT, and General Growth

Sears, a REIT, and General Growth

ICSC.org Article

Sears setting up REIT to raise $2.5 billion from shareholders

Sears Holdings Corp. plans to raise more than $2.5 billion from shareholders by offering rights to buy shares in a real-estate investment trust that will hold some of its stores.

The REIT is the latest in a series of steps Chief Executive Eddie Lampert has taken to shore up the finances of the retailer, which hasĀ posted losses for nearly three years.

Lampert controls nearly half of Sears, and No. 2 shareholder Fairholme Capital Management holds about 24 percent of the company. The two have said they plan to exercise their rights in the offering.