The Surprising Redevelopment Plans at Sears Holdings
The main theory for years has been that Sears Holdings (NASDAQ: SHLD ) would eventually take the vast real estate holdings and turn the company into a profitable real estate investment trust to match the likes of General Growth Properties (NYSE: GGP ) or Simon Property Group (NYSE: SPG ) . The shorts always focus on the weak retail operations and the longs forecast what the real estate would be worth under new tenants.
Most investors might be surprised to find that Sears is further along than they think on the path to redeveloping prime mall lots. The company has new concepts that involve greatly reducing the footprint of the existing Sears or Kmart stores while attracting new tenants that General Growth and Simon can't accommodate with prime malls nearly 100% leased.
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