Monday November 11th, 2013 - 10:01AM
Sears Canada announced that it has reached a definitive agreement with Montez Income Properties Corp. to sell its 50% joint venture interest in eight properties it owns with The Westcliff Group of Companies for approximately $315 million.
The agreement is subject to customary closing conditions including site investigations and financing. The transaction is scheduled to close on Jan. 8. The properties involved are comprised of four regional shopping centers, two strip centers and two open-format retail centers. Westcliff will continue as 50% owner and exclusive manager of the properties.
Sears stores that are currently situated on these eight properties will remain in operation; there will be no impact on customers or associates in these stores as a result of this transaction.
"As we have previously stated, unlocking the value of assets is a lever we use as a way to help create total value," said Doug Campbell, president and CEO, Sears Canada Inc. "The joint venture assets we are selling to Montez impact neither our store operations nor our ability to serve customers. As such, our primary focus in creating long-term value remains on the basics of the business and continuing to become more relevant with Canadians coast to coast."
The deal comes almost two weeks after Sears Canada, controlled by Sears Holdings Corp., said it would close its flagship downtown Toronto store and end the leases on four other locations in a $400 million deal.