sears holdings corp (SHLD) Key Developments
Sears Holdings Announces Remaining Stores Included in Primark Lease Agreement
Apr 21 15
Sears Holdings Corporation entered into lease agreements previously, with Primark for seven standalone stores in the Northeastern United States. The company previously named five locations and now announced that the two remaining stores will be located at Burlington Mall in Burlington, Massachusetts; and South Shore Plaza in Braintree, Massachusetts. Sears will continue to have a significant retail presence in both of these malls, which are owned and operated by Simon Property Group Inc. The details about the two store locations are: Burlington Mall: The Sears store and the detached Sears Auto Center will continue to operate in approximately 196,000 gross square feet on the lower level of this mall. Primark will lease approximately 73,000 gross square feet (approximately 54,000 net square feet retail space), predominantly on the second level of the mall; and South Shore Plaza: The Sears store and Sears Auto Center will continue to operate in approximately 138,000 gross square feet on the lower and second level. Primark will lease approximately 71,000 gross square feet (approximately 52,300 net square feet retail space), predominantly on the second level of the mall.
Sears Holdings Corporation and Simon Property Group Inc. Form Joint Venture to Unlock Real Estate Value
Apr 13 15
Sears Holdings (SHLD) and real estate investment trust Simon Property Group (SPG) announced they have formed a joint venture to unlock additional value for Sears' portfolio of real estate holdings. With the joint venture, Sears will continue to operate its existing stores at its contributed properties through lease arrangements, while providing the ability to create additional value through re-developing and re-leasing of the properties to third-party tenants.
Sears Holdings Enters into a Joint Venture with General Growth Properties
Apr 1 15
Sears Holdings has entered into a joint venture with General Growth Properties (GGP) through which SHLD has contributed 12 Sears Holdings properties at GGP malls. As part of the transaction, GGP has contributed cash to the JV, and the JV has leased back the existing SHLD stores. SHLD contributed its properties to the JV in exchange for an interest in the JV and $165 million in cash. The transaction values the properties at $330 million. A subsidiary of GGP has made a cash contribution of $165 million to the JV in exchange for a 50% interest in the JV, and the funds have been distributed to SHLD which will own the other 50% interest upon consummation of the transaction. SHLD has agreed to lease back the contributed properties from the JV under a triple-net master lease agreement for a period of ten years, with two five-year renewal options. The initial amount of aggregate base rent under the Master Lease will be $17.3 million. The JV has the ability to recapture up to 50% of the space leased to Sears Holdings and then re-lease this space to other tenants. The JV will be governed by an executive committee on which Sears Holdings and GGP have equal representation. An affiliate of GGP will be the leasing manager and property manager for the properties.
Craftsman to Introduce New Lineup of Lawn and Garden Equipment
Mar 13 15
Sears Holdings Corporation has announced that the Craftsman brand is introducing a new lineup of lawn and garden equipment. The new line of Craftsman Pro Series Riding Mowers are ideal for homeowners who have lawns with tall grass or hilly, uneven terrain. The riding mowers come in 42-, 46- and 54-in. reinforced steel deck options to provide strength and durability, and the spring assisted lift system and heavy gauge brackets are built for stability on uneven surfaces. Importantly, all riding mowers come equipped with a V-Twin Kohler® 7000 Elite Engine, which allows the user to reach speeds of up to 5.5 MPH. Pro Series Riding Mowers range from $1,999.99 to $3,499.99. For larger lawn care needs, the Craftsman Pro Series Zero Turn Riding Mowers offer a new solution. Reaching speeds of up to 8 MPH, users can cut large lawns quickly without sacrificing maneuverability. Fabricated steel deck options are available in 48-, 54- and 60-in. sizes, to provide strength and durability. Pro Series Zero Turn Riding Mowers are available now and range from $3,799.99 to $4,999.99. The Craftsman brand is reintroducing its most powerful battery powered lawn and garden platform. The upgraded 40 Volt cordless collection is powered by a 40 Volt MAX lithium-ion battery for a long runtime and includes a state of charge indicator so the user won't lose power in the middle of a job. 40 Volt 12-in. Cordless Chainsaw (071-98023) retails for $179.99 and comes equipped with tool-free chain tensioning, allowing for easier chain adjustment to attain the best cutting performance. 40 Volt Cordless Push Mower (071-98820) retails for $399.99 and features two 2.5 amp-hour 40 Volt MAX lithium-ion batteries for long runtime, ideal for small to medium yards and a great value. 40 Volt Cordless Hedge Trimmer (071-98022) retails for $149.99 and features a 24-in. dual-action blade with 3/4-in. cutting capability achieving the large blade gap of any Craftsman cordless hedge trimmer. 40 Volt Cordless Line Trimmer (071-98020) retails for $149.99 and gives the user the ability to easily and quickly trim edges and weeds in areas with obstacles or near irregular terrain. Features a 13-in. cutting swath to efficiently cover more ground and finish the job in less time. 40 Volt Cordless Sweeper (071-98021) retails for $149.99 and offers speed control, which allows the user to choose between six speed settings for optimal power or runtime. The sweeper has an air speed of up to 120 MPH and 90 CFM.
Sears To Split Off Stores
Feb 27 15
Sears Holdings Corporation (NasdaqGS:SHLD) plans to split off 200 to 300 stores into a separately owned real estate company by May or June 2015. The move would give Sears Holdings Corporation proceeds of about $2 billion.