Sears Holdings Corporation (NASDAQ:SHLD) and The Macerich Company (NYSE: MAC) have announced that they have formed a joint venture as part of Sears Holdings' continued efforts to improve its finances and generate value from its real estate portfolio.

As explained by both parties, this will be a 50/50 partnership in which Sears Holdings will contribute nine properties where Sears currently operates stores located at Macerich malls to the joint venture, including property with space leased to third parties.

Then, Sears Holdings will lease back from the new formed venture and continue to operate existing Sears Holdings stores at those properties.

In turn, Macerich contributed 150 million dollars in cash to the joint venture, which has been given to Sears Holdings.

"Since the filing of the registration statement for Seritage Growth Properties a few weeks ago, we have entered into JV agreements with the leading mall operators in the U.S., demonstrating the value of Sears Holdings' real estate portfolio," said Edward S. Lampert, Chairman and CEO of Sears Holdings.

Arthur Coppola, Chairman and CEO of Macerich, stated, "This new joint venture with Sears Holdings is in line with our overall strategy of reinvesting capital into our portfolio of proven, highly profitable locations.”

Lampert also highlighted the value created for Sears’ current investors, explaining that "We are pleased to be in a position to unlock substantial value for Sears Holdings shareholders and further facilitate the company's transformation. Through these transactions, we have additional capital to invest in our membership and integrated retail platforms. We will continue to operate these nine stores and there will be minimal impact on their day-to-day operations or the overall shopping experience for our members."





Latest jobs