Seritage Growth Properties — developed to help spin off Sears Holdings properties as the chairman of that company, Edward Lampert, and the board looked for ways to capitalize on the retailer’s real estate assets — has begun a review of strategic alternatives to enhance shareholder value, it has announced.
In addition to the assets review, Seritage announced that Lampert, who also has served as its chair, is retiring from the board effective immediately.
The company stated that it would continue to evaluate its balance sheet strategy and corporate structure to optimize the outcome of such a review. Seritage today is the owner and developer of 170 residential, retail and mixed-use properties.
Andrea Olshan, Seritage president and CEO stated, “The board and management believe that there is an ongoing disconnect between the company’s stock price and net asset value. The portfolio, which consists of 170 properties with distinct and diverse business plans and significant value creation opportunities, generally falls into the categories of cash-flowing multi-tenant retail and triple net pad sites, residential development land and large mixed-use master-planned developments. The opportunities for these underlying assets are extremely strong, and we believe that embarking on this process represents the most efficient way to unlock the full potential of this portfolio. We are committed to exploring a variety of opportunities to pull forward this value and deliver it to Seritage shareholders in the near term.”
Over the past year, Olshan noted, “We have been laser-focused on executing our strategy to further enhance the value of Seritage’s assets. This includes diversifying our tenant base with high-quality tech office, life sciences and medical tenants while improving rents and credit quality, pursuing densification opportunities and entitling properties for their highest and best use. Our successful implementation of this strategy at UTC and Aventura demonstrates the strength and diversity of the portfolio and exemplifies the type of development execution and value creation currently underway at Seritage. As the board conducts its review, we remain open-minded to pursuing the right value-maximizing alternatives while delivering on our business plans to drive shareholder value.”
At Westfield UTC is a mall and development in San Diego while Esplanade at Adventura is a mall and development in Adventura, FL.
Lampert maintained, “It has been a privilege to serve as chair of the Seritage board since 2015. I have always believed in the potential of Seritage and agree that its stock price is currently significantly undervalued. I encourage and support the board’s efforts to explore and pursue strategic alternatives to enhance shareholder value. I have decided to retire to allow additional time to focus on my other investments and to provide me with greater flexibility to explore alternatives for my investment in Seritage, which could include participating with parties that may be interested in acquiring certain of the company’s assets and trading shares in open market transactions.”
