Sears forms Reit to raise US$2.5b in cash amid losses

London

SEARS Holdings Corp formed a real estate investment trust that will acquire about 254 of the retailer's properties, generating more than US$2.5 billion in proceeds for the money-losing department store chain.

The Reit, Seritage Growth Properties, will lease the Sears and Kmart locations back to the retailer, Sears said in a statement on Wednesday. Seritage will fund the purchase with debt and proceeds from a rights offering.