Sears Raises Money with REITs

Sears is continuing to sell its assets in order to survive. The retailer plans to sell 254 properties to a real-estate investment trust in order to raise $2.5 billion. The REIT, Seritage Growth Properties, will then lease the properties back to Sears, and offer stock options to existing shareholders. In order to raise an additional $165 million, Sears will give 12 properties to a 50-50 joint venture with General Growth Properties.

After last year’s attempt to raise cash with their decrease of stake in Sears Canada and their spinoff endeavor of Land’s End clothing, this year’s REIT transaction will give Sears essential cash funding. At the end of their previous fiscal year, Sears maintained $1.6 billion in negative free-cash flow, which left them with only $250 million in cash. Although the company still has room to downsize in order to raise money, Sears will have to start selling more in their stores and less of their assets if they want to thrive as a retailer.

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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