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Berkshire Loans $2 Billion to Real Estate Firm Backed by Buffett

  • Seritage using funds to refiance debt, boost capital
  • Loan carries a 7 percent annual interest rate plus a fee
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Warren Buffett bet his own money more than two years ago on the real estate empire that was spun out of Sears Holdings Corp. Now, his Berkshire Hathaway Inc. is helping finance the business.

Berkshire agreed to provide a $2 billion loan to Seritage Growth Properties, the real estate investment trust owns Sears stores, as well as properties the department-store chain has vacated. Seritage is using a portion of the money to refinance debt, while adding to capital. Buffett bought 2 million shares in December 2015 that are valued at about $85 million.