Seritage Growth Properties seeks to sell all of its assets

From left to right: Former Chairman of Seritage Growth Properties, Eddie Lampert, and current CEO and Chairman, Andrea Olshan (Getty Images, Columbia Business School – Columbia University, LoopNet, Seritage Growth Properties, iStock)

Seritage Growth Properties, a spin-off from Sears, could sell all of its assets and dissolve as the deadline approaches to repay a loan from Warren Buffett’s company.

The company’s board has recommended a plan to liquidate its properties and return the proceeds to shareholders, according to a proxy filing released Thursday.

The plan requires a two-thirds shareholder vote, but it’s already halfway there. Eddie Lampert, the former chairman of Seritage, swapped his stake in the company for stock and agreed to vote for the plan. Lampert now owns about 29% of the company’s outstanding Class A shares, according to the proxy filing.

Shares of the company jumped more than 70% on the news.

Seritage was spun off from the struggling Sears department store in 2015. In March, the company announced that it would seek strategic alternatives, including a possible sale, and that Lampert would step down. The company also changed from a real estate investment trust to a C corporation.

As of March, the company held interests in 161 properties and 19 million square feet of leasable area. The company said it was no longer exposed to leases from Sears or Kmart.

Sears recently tapped CBRE to sell a portfolio of 38 properties in multiple states to repay a $1.44 billion Berkshire Hathaway loan from Warren Buffett maturing in June 2023, according to CoStar.

Seritage also announced on Friday the appointment of Adam Metz as chairman of its board of directors. Metz was appointed to the board in March and was a former chief executive of Carlyle Group.

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