Sears Holdings to form REIT for some Sears, Kmart stores

[April 01, 2015]  (Reuters) - Sears Holdings Corp said it would form a real estate investment trust, which will buy about 254 Sears and Kmart stores in a transaction valued at more than $2.5 billion.

The newly formed REIT, Seritage Growth Properties, will launch a rights offering to partially fund the purchase of the stores.

In a separate deal, Sears said it would form a joint venture with General Growth Properties Inc <GGP.N>, under which the retailer will sell 12 of its stores located in General Growth's malls, and lease them back.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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